NNPC Reports 72% Completion of $2.8 Billion AKK Gas Pipeline

Nzubechukwu Eze
Nzubechukwu Eze

The Nigerian National Petroleum Company Limited (NNPC) has announced that the $2.8 billion Ajaokuta-Kaduna-Kano (AKK) gas pipeline project has reached 72 per cent completion as of the first quarter of 2025.

Speaking at the 2025 Oloibiri Lecture Series and Energy Forum (OLEF) in Abuja, NNPC’s Group Chief Executive Officer, Bayo Ojulari, emphasized the company’s capacity to deliver on major energy infrastructure projects. The event was organised by the Society of Petroleum Engineers (SPE) Nigeria and hosted by the Petroleum Technology Development Fund (PTDF).

The AKK pipeline, a 614-kilometre-long infrastructure project, is a vital component of Nigeria’s gas master plan. It is designed to transport natural gas from the southern region to the north, running through Ajaokuta, Abuja, and Kaduna to Kano. The 40-inch diameter pipeline is part of the broader Trans-Nigeria Gas Pipeline (TNGP) and aims to boost electricity generation, industrial development, and reduce gas flaring.

Ojulari, represented by NNPC’s Executive Vice President (Upstream), Udobong Ntia, highlighted that substantial investments in infrastructure are central to repositioning Nigeria’s energy sector. He urged stakeholders to rethink existing paradigms to drive sustainability.

“Over 600 million people in Africa still lack access to electricity, which is both a development challenge and an opportunity for energy inclusion,” Ojulari stated. He added that oil and gas account for more than 85 per cent of Nigeria’s export earnings and play a critical role in government revenue.

Citing the International Energy Agency’s World Energy Outlook, he noted that global energy demand is expected to increase by over 25 per cent by 2040, driven by industrialisation in Asia and Africa’s population growth.

Ojulari also spoke on NNPC’s digital transformation, highlighting initiatives such as real-time reservoir monitoring, predictive maintenance, and AI-powered subsurface imaging through its subsidiary, NNPC Exploration and Production Limited (NEPL). He said the company’s digital strategy is anchored on intelligent automation, data governance, and cyber resilience.

“This transformation is not just about efficiency. It’s about future-proofing our assets and staying competitive in a low-carbon world,” he said, adding that energy sustainability is impossible without digital sustainability and policy support.

He praised the 2021 Petroleum Industry Act (PIA) for enabling NNPC’s transition into a fully commercial enterprise capable of competing globally. Ojulari reaffirmed the company’s commitment to Nigeria’s Energy Transition Plan, which aims for net-zero emissions by 2060, noting ongoing initiatives such as expanding the autogas programme to over one million vehicles by 2026.

He also revealed that NNPC currently contributes about 1.5 gigawatts of installed power capacity to the national grid.

Meanwhile, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, disclosed that about 10 recently awarded Petroleum Prospecting Licenses (PPLs) are now operational. Represented by Executive Commissioner for Development and Production, Enorense Amadasu, Komolafe said the commission has issued 24 priority regulations and is preparing for the 2025 bid round, following the successful conclusion of the 2024 licensing round.

“We have awarded 70 offshore PPLs and an additional 70 onshore and offshore blocks. The commission is committed to supporting awardees and ensuring production targets are met,” Komolafe stated.

Former Minister of Petroleum Resources, Don Etiebet, emphasized the need for indigenous companies to resolve financing challenges and implement succession plans focused on sustainability and merit-based employment.

“Indigenous operators must move away from the ‘business as usual’ mindset and invest in human capital development to ensure long-term growth,” he said.

In her remarks, Amina Danmadami, Chairperson of SPE Nigeria, reiterated that despite the global push for renewables, oil and gas remain crucial to Nigeria’s economic stability. She described OLEF as a longstanding platform for policy dialogue and innovation, commemorating the first oil discovery in Oloibiri, Bayelsa State.

“The path to sustainability for Nigeria lies in optimisation—leveraging technology, strengthening supply chains, and enacting enabling policies,” she said.

Ahmed Aminu, Executive Secretary of the PTDF, represented by Ifeoma Nwokike, said the fund remains committed to building human and institutional capacity in the oil and gas sector. He stressed the importance of policy, technology, and supply chain resilience in achieving energy security.

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