$2.8bn AKK Gas Pipeline Project Hits 86% Completion, November Set for Mechanical Delivery

After years of delays and shifting timelines, Nigeria’s ambitious 614-kilometer Ajaokuta-Kaduna-Kano (AKK) gas pipeline project has now reached 86.05 percent completion, with the Nigerian National Petroleum Company Limited (NNPC) setting a new target of November 30, 2025, for mechanical completion. Valued at approximately $2.8 billion, the AKK is expected to be a game-changer in Nigeria’s quest for energy security, industrial revitalization, and economic diversification.

Speaking at the “2025 AKK Pipeline Progress Update and Opportunities Engagement” held in Abuja, the new Group Chief Executive Officer of NNPC, Bayo Ojulari, described the AKK as more than a pipeline—he called it a strategic economic lifeline that will transform Northern Nigeria and the broader national landscape.

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Gas to Power: Reviving Industrial Hubs in the North

The AKK pipeline, once operational, is designed to deliver up to 2.2 billion standard cubic feet of gas per day. This volume is sufficient to fuel power plants in Abuja, Kaduna, Kano, and surrounding cities, with projected power generation capacities of 1,350 megawatts across Abuja and Kaduna, and 900 megawatts in Kano.

Ojulari pointed out that these power outputs are expected to rejuvenate long-dormant industries in northern Nigeria. “The pipeline will resuscitate moribund industries, create thousands of jobs, and support agro-processing plants and other gas-based industries,” he said. For Ojulari, the AKK is deeply personal: “I remember growing up and seeing the booming industries in Kaduna and the vibrant commerce in Kano. This project brings a realistic promise of revival.”

Boosting Local Content and Employment

So far, the project has directly employed over 1,900 Nigerians, ranging from engineers to semi-skilled workers. The employment figures are expected to multiply once the pipeline becomes operational, due to ripple effects in transportation, logistics, maintenance, and downstream industries. The NNPC also plans to establish industrial parks in Ajaokuta, Kano, and other catchment zones to stimulate economic activity, attract investment, and increase tax revenue.

Energy Security and Gas Infrastructure Expansion

The AKK pipeline represents a crucial pillar of Nigeria’s “Decade of Gas” initiative, which aims to reduce the nation’s dependency on crude oil while positioning gas as a transitional fuel for economic and environmental sustainability. According to Ojulari, “The project is a national backbone for energy equality, delivering gas to regions previously neglected in infrastructure deployment.”

The pipeline is also pivotal to Nigeria’s push for compressed natural gas (CNG) adoption in the transport sector. By providing access to clean and affordable energy, it is expected to reduce fuel costs and vehicle emissions while facilitating easier movement of goods, especially agricultural produce, from the North to other regions and even across African borders.

Environmental and Export Benefits

Ojulari highlighted the environmental advantages of transitioning from diesel and oil to natural gas. “The AKK will significantly reduce carbon emissions by promoting natural gas—the cleanest burning fossil fuel—as the mainstay of power generation,” he said. This aligns with Nigeria’s Gas Flare Commercialisation Programme, which seeks to capture and repurpose flared gas for productive use.

Long-term, the AKK is expected to play a strategic role in linking Nigeria’s energy infrastructure with North African countries, facilitating transcontinental gas trade and promoting regional integration.

Progress and Challenges

Providing a more detailed technical update, Executive Director of Projects at the Nigeria Gas Infrastructure Company Limited (NGIC), Audu Ibrahim, confirmed that the project—launched in 2020—now has a “clear path to delivery.” According to Ibrahim, key segments such as KP303 to Kano have been welded, tested, and pre-commissioned, while the critical River Niger crossing has been completed, effectively de-risking the project.

“We now stand at 86.05 per cent completion. With the remaining work visible and clearly defined, mechanical completion is firmly set for November 30, 2025,” Ibrahim stated.

However, Ibrahim also acknowledged the hurdles the project has faced, including funding delays, challenging terrain, security threats, and disruptions caused by the COVID-19 pandemic. Initially projected for completion in December 2023, the deadline was pushed multiple times—to Q4 2024, then Q1 2025—before settling on the new end-of-2025 target.

Funding and Legislative Leverage

A major turning point in project financing came with the passage of the Petroleum Industry Act (PIA). This legislation restructured NNPC into a commercial entity, enabling it to raise funds independently for viable projects. Executive Vice President for Gas, Power, and New Energy at NNPC, Olalekan Ogunleye, explained that the PIA has transformed how NNPC sources capital.

“Today, NNPC can approach money markets just like any corporate organization. For the AKK and other bankable projects, funding is no longer a major bottleneck,” Ogunleye affirmed.

A Future-Shaping Project

From enhancing power generation and reviving moribund industries to enabling cross-border energy trade, the AKK pipeline encapsulates the vision of a future-proof Nigeria. It offers not just economic renewal but also an opportunity to integrate distant regions of the country into a unified national energy framework.

As the AKK nears mechanical completion, the real test will lie in timely commissioning, consistent policy support, and effective management to ensure that this $2.8 billion investment delivers on its enormous promise.