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$2.8 billion AKK pipeline to begin gas supply to Abuja in July – NUPRC

by Catherine Agbo
April 14, 2026
in Business Scene, Lead of the Day
0
$2.8 billion AKK pipeline to begin gas supply to Abuja in July – NUPRC
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The $2.8 billion Ajaokuta–Kaduna–Kano (AKK) pipeline is expected to begin gas delivery to Abuja by July.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) made this known through its in-house publication, where a spokesperson provided an update on the project’s progress.

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The project, which was initiated in 2008, has missed many delivery targets, including earlier deadlines of 2023 and the final quarter of 2025.

With the pipeline now more than 90 per cent complete, according to Reuters, citing an energy lawyer involved in the project, July has been set for it to begin delivering gas to the nation’s capital.

“We’re hoping that by July, gas will be delivered to Abuja through the AKK gas pipeline,” a spokesperson for the NUPRC said.

The 614-kilometre pipeline is expected to transport over 2.2 billion cubic feet of gas per day and forms a critical part of Nigeria’s strategy to transition towards gas, power industries in the northern region, and reduce dependence on diesel and fuel oil.

The AKK pipeline is a key segment of Nigeria’s broader gas infrastructure expansion, designed to connect gas-rich southern regions to demand centres in the north. The pipeline runs through Kogi State, Niger State, and Kaduna State before terminating in Kano, enabling supply to industries and power plants across Northern Nigeria.

Construction of the pipeline began in 2020 but faced delays due to funding constraints and technical challenges, particularly the complex crossing of the River Niger using advanced horizontal directional drilling techniques.

The project is being financed through a mix of debt and equity. The China Export and Credit Insurance Corporation is providing insurance cover for 85% of the total project cost—approximately $2.59 billion, sourced from Chinese lenders. The Nigerian Gas Company is contributing the remaining 15% equity, valued at about $434 million.

Gas transported through the pipeline will largely originate from southern producing areas, linked through the Obiafu-Obrikom-Oben (OB3) gas pipeline, strengthening supply across the national grid.

The project is also expected to unlock industrial growth, improve electricity generation, and support Nigeria’s transition to a gas-based economy.

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