By Obas Esiedesa, Abuja

The Chairman of Lee Engineering Group and Allied Companies Limited,  Dr. Leemon Ikpea, has urged the Federal Government to set up a security fund to finance the fight against oil theft and pipeline vandalism in the Niger Delta.

The fund, he said, should come from extra taxes on International Oil Companies, IOCs, and indigenous oil companies. 

Ikpea who spoke to journalists in Abuja to mark the 31st anniversary of Lee Engineering and Construction Limited, said tackling insecurity around oil sector operations would boost Nigeria’s production and allow the government to increase its revenues to fund infrastructure.

According to him, “Security issue is a big issue and not something we should leave for the government alone. So this is to encourage big organisations to support the government to improve on security.

“If possible, we can have a security fund that will be a pool that the government can draw from to tackle insecurity. If the government taxes multinationals and other bigger companies.

“This can be done by imposing taxes on the profits made by the companies. For example, 0.1 percent or something like that. The money will be paid into the pool every year. From that fund, some critical roads could be built too to boost security”.

Looking at the over 50 years oil and gas industry operations in the country, Dr. Ikpea pointed out that Nigerians have always played an important role in the sector, adding that Nigerians are as competent as the expatriate workers.

He disclosed that a fabrication factory currently under construction in Warri, Delta State would be completed early next.

He said the factory being built by its subsidiary company, LEE Engineering Mechinery Services Limited,  will produce high pressure vessels, heat exchangers, scrubbers as well other equipment needed in the sector.

He therefore urged the government to ensure that IOCs patronise local companies, adding that in terms of quality and competence, Nigerians can compete favourably with other foreign nationals.