News

Nigeria Clears Hurdle on $2.8 Billion Gas Pipeline to Supply Its North

Nigeria Clears Hurdle on $2.8 Billion Gas Pipeline to Supply Its North
Tuesday, 30 December 2025 03:07
  • Nigeria completes AKK gas pipeline construction, crossing Niger River
  • Project to connect northern cities to gas network by 2026
  • Pipeline aims to boost power, fertilizer and gas-based industries

Construction of Nigeria’s Ajaokuta-Kaduna-Kano (AKK) gas pipeline has been completed, including the successful crossing of the Niger River, previously one of the project’s most significant technical hurdles, state-owned oil company NNPC Ltd said on Sunday, December 28.

NNPC Chief Executive Bashir Ojulari said overcoming this obstacle would allow the pipeline to be tied into the national gas transmission network by early 2026, enabling gas deliveries to Kaduna, Kano, Abuja and Ajaokuta.

Speaking after a meeting with President Bola Tinubu, Ojulari said the project’s importance extends beyond energy supply. The pipeline is intended to support the development of gas-based industries, including power generation, fertilizer production and other industrial activities located along its route.

First conceived in 2008 at an estimated cost of $2.8 billion, the AKK pipeline is a central pillar of Nigeria’s strategy to monetize its natural gas resources. Authorities have identified the country’s northern region, long affected by structural deficits in energy infrastructure, as a key beneficiary.

Nigeria, one of Africa’s leading gas producers alongside Algeria and Egypt, holds an estimated 209 trillion cubic feet of proven reserves but continues to face structural challenges. Despite repeated project announcements, national gas production declined by 1.2% between 2022 and 2023, according to the Nigeria Extractive Industries Transparency Initiative. Large volumes of gas are also still flared due to insufficient transport and processing infrastructure.

The AKK pipeline forms part of a broader reform agenda that includes the 2021 Petroleum Industry Act, the Nigerian Gas Flare Commercialization Programme and policies promoting the domestic use of compressed natural gas. Without concrete progress across these initiatives, the pipeline’s capacity to drive large-scale industrial development in northern Nigeria may remain below the government’s stated ambitions.

Olivier de Souza

On the same topic
World Bank announces $137 million to boost West Africa digital economy Program expands broadband, aiming connect 5.2 million people Initiative...
United States led arms exports to Africa with 19% share African arms imports fell 41%, mainly due to Algeria drop Sub-Saharan imports rose...
Africa's branded hotel pipeline reached a record 123,846 rooms across 675 projects in 2026, up 18.6% year-on-year, signalling sustained investor...
Since its 2019 IPO, Airtel Africa paid Deloitte over $37 million in audit and non-audit fees, with annual costs rising sharply due to growing...
Most Read
01

The BCEAO cut its main policy rate by 25 basis points to 3.00%, effective March 16. Inflation...

BCEAO Cuts Key Rate to 3.00% as WAEMU Faces Deflation
02

Ethio Telecom has signed a new agreement with Ericsson to expand and modernize its telecom netwo...

Ethiopia’s State-Owned Telco Teams Up With Ericsson to Expand and Upgrade Its Network
03

EIB commits over €1 billion for renewable energy in sub-Saharan Africa Funding supports Miss...

EIB Commits €1 Billion to Renewable Energy Under Africa’s “Mission 300” Initiative
04

MTN Zambia tests Starlink satellite service connecting phones directly from space Direct-to...

Satellite direct-to-device telecoms: promise, momentum and hard limits
05

Nigeria introduced a 1% flat tax on the turnover of informal-sector businesses under a new presump...

Nigeria Rolls Out 1% Tax on Informal Businesses Under New Fiscal Framework
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.