The $2.8 billion Ajaokuta-Kaduna-Kano gas pipeline project has so far cost the Nigerian National Petroleum Company Limited $1.1 billion, according to an announcement made on Monday by Mele Kyari, group chief executive officer of NNPC Ltd.
In addition, he predicted that the pipeline will be powered by the third quarter of this year. During the tour of the facility at Akoho village, close to the Lokoja end of the proposed gas pipeline in Kogi State, Kyari spoke.
“For the benefit of the Nigerian public, this is one of the most massive projects that we run in the company. It is of immense proportion of value to our country and the socio-economic growth of this nation.
“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 on this project. We have so far spent over $1.1bn on this project from our cash-flow.
“We are a very different company today. We are a commercial company. We have inter-company loans within our company now. This company can fund this project. So we do not need any support on this project. We will deliver this project,” Kyari stated.
He said that as of right now, NNPC Ltd owes its contractors absolutely nothing and that all of their invoices have been paid.
“There are over 30 sites that are active today in this project and we are very optimistic that we will deliver this project,” Kyari stated.
Prof. Yemi Osinbajo, the vice president, stated last week that the $2.8 billion natural gas pipeline project was 43% finished.
At a gathering in Abuja, Osinbajo, speaking through the Secretary to the Government of the Federation, claimed that the AKK pipeline was a significant undertaking under the presidency of Major General Muhammadu Buhari (ret.).
In July 2020, when Buhari officially opened the AKK pipeline project, it was revealed that the $2.8 billion facility would be funded by the Bank of China and Sinosure, a Chinese export and credit insurance business.
Buhari had simultaneously flagged off building work on the project at the Ajaokuta and Kaduna camp sites through a virtual conference.
