Abuja, Dec 29 – Nigeria’s state-owned oil company, NNPC Ltd is positioning a long-delayed gas pipeline as the catalyst for an industrial revival in the country’s north, following a key construction milestone that has stalled progress for years.
Bashir Ojulari, Group Chief Executive Officer of NNPC Ltd, said the company has completed welding of the main line of the $2.8 billion Ajaokuta–Kaduna–Kano gas pipeline, including the critical River Niger crossing. The achievement clears the path for pipeline connections to begin early next year.
“This is not just about energy,” Ojulari said after briefing President Bola Tinubu. “It’s about industrialisation. Fertiliser plants, power generation, and gas-based industries in Kaduna, Kano, Abuja, and Ajaokuta. We expect to see industrial parks spring up.”
First conceived in 2008, the AKK pipeline is central to Nigeria’s strategy of harnessing its vast natural gas reserves to drive economic growth. Northern Nigeria has long suffered from chronic power shortages and limited energy infrastructure, constraining manufacturing and industrial activity.
Ojulari said oil production 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 output is set to continue increasing. He attributed recent operational improvements to reforms under the Petroleum Industry Act, which have enabled NNPC to operate on a commercial basis rather than rely on federal budget allocations.
He added that President Tinubu reaffirmed his ambition to attract $30 billion in new energy investments by 2030 and raise oil output to 2 million barrels per day by 2027.
