NNPC Invests Over $1 Billion in Massive Gas Pipeline Project
The Nigerian National Petroleum Company Limited (NNPC Ltd) has invested more than $1 billion in the Ajaokuta-Kaduna-Kano (AKK) gas pipeline project, one of the largest projects undertaken by the company in recent years.
The 614-kilometer AKK gas pipeline project will transport natural gas from Ajaokuta in Kogi State to Kaduna and Kano states.
According to a report published on Tuesday, April 25, by Investorsking, Mele Kyari, the Group Chief Executive Officer of NNPC Ltd, said the project has not stopped for a single day since its commencement, despite the lack of third-party financing.
Kyari stated that NNPC Ltd has continued to fund the project, spending over $1.1 billion on the project from its cash flow and assured the Nigerian public that NNPC Ltd would deliver the project as planned. The mega project is expected to create employment opportunities and boost the economy of Nigeria.
Currently, NNPC Ltd owes no single dollar to its contractors, and the company has paid all their invoices, Kyari disclosed. Over 30 sites are active today in the AKK gas pipeline project, and NNPC Ltd is optimistic that it will deliver the project.
Vice President of Nigeria, Prof. Yemi Osinbajo, said the AKK gas pipeline project was 43% completed last week. Osinbajo spoke through the Secretary to the Government of the Federation at a function in Abuja, where he reiterated that the project was a major project of the regime of President Muhammadu Buhari.
President Buhari inaugurated the AKK gas pipeline project in July 2020, and during the inauguration, it was announced that the Bank of China and Sinosure, a Chinese export and credit insurance corporation, were to fund the $2.8 billion facility. However, NNPC Ltd has continued to fund the project without third-party financing.