Nigeria’s state oil company, NNPC Ltd, is positioning the long-delayed Ajaokuta–Kaduna–Kano (AKK) gas pipeline as a catalyst for industrialisation across northern Nigeria, its Group Chief Executive Officer Bashir Ojulari said on Sunday after briefing President Bola Tinubu.
Ojulari said the company has completed welding of the AKK pipeline’s main line, including the technically challenging River Niger crossing, a milestone that had stalled the project for years.
The $2.8 billion infrastructure is now expected to be connected early next year, clearing the path for gas supply into major northern industrial corridors.
According to Ojulari, the pipeline is designed to unlock large-scale industrial activity rather than merely expand energy access.
He said the availability of gas would support fertiliser production, power generation, and other gas-based industries across Kaduna, Kano, Abuja, and Ajaokuta, with expectations that industrial parks would emerge along the corridor.
“This is not just about energy. It’s about industrialisation,” Ojulari said, pointing to the role of gas in lowering production costs and supporting manufacturing capacity in regions long constrained by weak power infrastructure.
The AKK pipeline, first conceived in 2008, is a central component of Nigeria’s gas monetisation strategy and its broader plan to leverage vast natural gas reserves for economic growth.
Northern Nigeria has historically lagged in industrial development due to chronic electricity shortages and limited access to energy infrastructure, factors that have constrained private investment and manufacturing expansion.
Ojulari also outlined NNPC’s production outlook, stating that crude oil output is expected to rise to 1.8 million barrels per day in 2026 from about 1.7 million barrels per day this year, while gas production is projected to continue increasing.
He attributed the improved outlook to structural reforms under the Petroleum Industry Act, which have repositioned NNPC as a commercially driven entity operating without reliance on federal budget allocations.
The NNPC chief said President Tinubu reaffirmed the administration’s target of attracting $30 billion in new investments by 2030 and increasing oil production to 2 million barrels per day by 2027.
The AKK pipeline, he added, aligns with the government’s industrial and energy security objectives by supporting domestic gas utilisation and reducing dependence on imported fuels.
With the completion of key construction milestones, market participants and industry stakeholders will be watching closely to see whether the AKK pipeline can finally deliver on its promise of reshaping Nigeria’s industrial landscape, particularly in the north, after more than a decade of delays.