NNPC confirms adequate funding for project to trigger economic growth
By Jeph Ajobaju, Chief Copy Editor
More than $1.1 billion has been released for the Ajaokuta-Kaduna-Kano (AKK) gas pipeline project and there is no truth in reports of inadequate funding, says Nigerian National Petroleum Corporation (NNPC) Group Managing Director Mele Kyari.
Kyari confirmed release of funds for the project envisioned to provide a steady supply of natural gas to power plants and industries across the country.
The pipeline traverses more than 614 kilometres from Ajaokuta in Kogi through Abuja to Kano.
Kyari issued a statement while surveying one of the sites in Ahoko in Kogi which dismissed reports the project had run aground due to a lack of funding for its second and third phases:
“For the benefit of the Nigerian public, this is one of the most massive projects that we’ll run in the company, it is of immense proportion of value to our country and to the socio-economic growth of our country,” he stressed.
“We know that this is a must-deliver project. This project has not stopped for one day. We have continued to fund it despite the fact that we do not have third-party financing for the project.”
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Three phases of construction
The pipeline is being built in three phases.
The first phase is the construction of a 200-km section between Ajaokuta and Abuja. The second phase will cover the Abuja-Kaduna section and the third will complete the construction by extending it from Kaduna to Kano.
Kyari reiterated the capacity and readiness of the NNPC to meet all the financial obligations due to the importance of the project.
“We have so far spent over $1.1bn on this project from our cashflow. We are a very different company today. We are a commercial company. We have inter-company laws within our company now,” Kyari said, per Vanguard.
“This company can fund this project, so we do not need any support on this project to deliver this project now.
“As we speak now, we don’t owe a dollar to our contractors today. We paid all their invoices, there are over 30 sites that are active today in this project, and we are very hopeful that we will deliver this project.”
The AKK gas pipeline project is planned to boost economic growth by increasing natural gas supply for electricity generation and for industrial use, apart from creating thousands of jobs during and after construction.
It is one of several projects the Muhammadu Buhari administration is undertaking to ensure infrastructural development and stimulate the economy.