Oluwamuyiwa Nelson Kosile, managing director of IKOSH Nigeria, talks to The Energy Year about Nigeria’s Decade of Gas initiative, the growing demand for infrastructure solutions, the impact of IOC divestments and the evolution of IKOSH’s business.
IKOSH Nigeria is an indigenous provider of engineering services to the Nigerian oil and gas sector.
- Nigeria’s Decade of Gas is directing investment towards enabling infrastructure. The main opportunities extend beyond equipment supply to pressure management, metering, emissions control, safety and operational monitoring.
- Gas measurement is becoming commercially critical. As more producers, processors and distributors connect to supply corridors, accurate custody transfer, accounting and reconciliation systems are increasingly important.
- Operators are demanding lifecycle support rather than standalone equipment. Gas infrastructure must be properly engineered, installed, commissioned and supported throughout its operating life.
How has the Decade of Gas initiative influenced IKOSH’s investment strategy?
Nigeria’s Decade of Gas initiative has helped sharpen our investment direction. It has created a clearer national focus around gas as an industrialisation tool, and that naturally affects the type of capabilities companies like IKOSH must build.
For us, the opportunity is not only in supplying equipment. The real opportunity is in the infrastructure required to make gas distribution, pressure management, measurement, safety and accountability more reliable. As gas becomes more central to power generation, manufacturing, drilling operations and industrial clusters, operators and end-users require systems that can help them manage pressure, measure accurately, control emissions and respond faster to operational issues.
This has influenced our decision to expand from our earlier strength in automation and control systems into more specialised metering, pressure regulation and modular gas infrastructure solutions. We see gas as a long-term national priority, but the country still has infrastructure and technical gaps. IKOSH wants to be one of the indigenous companies helping to close those gaps through practical engineering delivery, local support capacity and credible technical partnerships.
What products and services are seeing stronger demand as a result of the initiative?
We are seeing increasing demand for pressure regulating and metering skids (PRMSs), as well as custody transfer and measurement-related systems such as lease automatic custody transfer (LACT) units.
PRMSs are particularly important because gas distribution depends on pressure control, safety and measurement accuracy. When pressure drops, when there is leakage or when there is an abnormal flow condition, operators need systems that can quickly alert the control room.
LACT and related systems are also becoming more relevant because measurement accuracy is now a commercial issue, not just a technical issue. As more companies connect to supply corridors and more operators become involved in gas production, processing and distribution, the industry needs stronger systems for accounting, reconciliation and transaction integrity.
The demand for these systems varies depending on the pressure requirement, facility size, line configuration and operational needs. What is clear is that operators are looking for solutions that are properly engineered, installed, commissioned and supported throughout their operating life. That is where IKOSH is positioning itself.
How has IKOSH scaled from a local contractor into a stronger indigenous engineering company?
IKOSH has grown by focusing on execution discipline. The ambition from the beginning was to build a company that could compete in engineering delivery, not just participate as a local contractor.
Our growth has come gradually through completed work, delivery reliability, budget discipline, technical responsiveness and trust. In this industry, reputation is built project by project. When a company delivers properly, referrals follow, and larger opportunities become possible.
We have also been intentional about building local human capital. Today, IKOSH has a team of 53 employees, and we continue to invest in people, facilities and technical partnerships. Our relationships with OEMs and technical partners have helped us deepen our competence, but our objective is always to retain as much know-how as possible in-country.
We are also investing in physical capacity. We have a mechanical facility, and by the end of 2027, we aim to expand it to include an assembly plant for retrofit items, compressors and related equipment. The first block of that expansion is targeted for commissioning by Q4 2026. This is important because indigenous capacity cannot be built only through representation. It requires facilities, people, systems and the ability to support clients beyond the point of supply.
Do you expect IOC divestments to have a significant impact on IKOSH’s business?
Yes, they will have a significant impact on the Nigerian oil and gas services ecosystem. When assets move into the hands of indigenous operators, there is usually a renewed focus on rehabilitation, production improvement, pipeline upgrades, facility optimisation and replacement of obsolete systems. These activities create demand for engineering companies, service providers, technology partners and local technical support.
Divestments can also help retain more technical knowledge within Nigeria. If indigenous operators succeed in improving asset performance, the benefit is not limited to the operator alone. It strengthens the entire ecosystem: engineering companies, service firms, OEM partners, fabrication facilities, technical manpower providers and local supply chains.
However, divestment only creates real value when the new operators invest in asset integrity, production optimisation, safety systems and technical capacity. That is where local engineering companies must be ready to perform at a higher standard.
What have been some of IKOSH’s landmark projects?
One important project for us was our involvement in Seplat Energy’s Sapele Gas Processing Plant. IKOSH was part of the consortium involved in the project, and our performance helped strengthen our credibility in gas infrastructure delivery.
That project demonstrated our ability to participate in major gas-related infrastructure at a time when gas was becoming a stronger national priority. It also gave us visibility as a company capable of contributing to technically important projects in Nigeria’s gas value chain.
A broader achievement for IKOSH has been our transition from a company known primarily for automation and engineering support into a more integrated engineering services company with growing capability in metering, pressure regulation, mechanical systems, procurement, commissioning, lifecycle support and modular infrastructure solutions.
What are IKOSH’s future ambitions?
Our ambition is to continue building IKOSH into a stronger integrated energy solutions company with deeper technical capability and regional relevance.
In the near term, we are focused on strengthening our engineering services, expanding our modular infrastructure offerings, deepening OEM collaboration and building more local capacity around deployment, integration, commissioning, and after-sales support.
In the longer term, we want to participate more directly in the upstream value chain. We have qualified to bid on acreage and hope to secure a licence. If that does not happen immediately, we would consider partnerships or joint investments as a practical first step.
We are also looking beyond Nigeria. IKOSH has already entered Equatorial Guinea, and we are examining opportunities in Sudan, Uganda and Angola. Many African markets need credible technical and financial partners who understand the realities of operating in challenging environments. We believe IKOSH can bring value in those jurisdictions, particularly through engineering support, modular systems, local execution capacity and partnership-driven project delivery.
Ultimately, our goal is to be known not simply as a service provider, but as a trusted Nigerian energy solutions partner: technically disciplined, responsive, locally grounded and capable of supporting operators across the full lifecycle of their assets.