As Nigeria grapples with economic recovery, energy insecurity, and regional imbalances in development, one project stands out as the most strategic and transformative: the Ajaokuta–Kaduna–Kano (AKK) Natural Gas Pipeline.
Spanning 614 kilometers, the AKK pipeline aims to transport natural gas from Nigeria’s resource-rich south to the underpowered north—unlocking growth, powering industries, and connecting Nigeria to regional and international gas markets. It is not only a vital economic artery for Northern Nigeria, but arguably the most important infrastructure project in the country today.
But despite its significance, the AKK project faces major funding issues, poor prioritization, and stiff competition for resources. This post outlines why the AKK pipeline deserves urgent national focus and how Nigeria’s project management choices could determine the country’s economic trajectory for decades.
📍 What is the AKK Pipeline?
The AKK pipeline is a segment of Nigeria’s broader gas expansion strategy. Specifically:
- Length: 614 kilometers
- Route: From Ajaokuta in Kogi State through Kaduna to Kano
- Purpose: To deliver gas to northern Nigeria and, eventually, to Europe through:
- The 1,300km Trans-Nigerian Gas Pipeline (TNGP)
- The proposed 4,401km Trans-Saharan Gas Pipeline (TSGP)
The vision is bold—use Nigeria’s vast gas reserves to transform its economy, generate revenue, reduce reliance on oil, and emerge as a key energy exporter to Europe.
🏗️ Project Approval and Financing Timeline
The AKK project’s development began with high hopes and quick approvals:
- June 2017: NNPC submitted the AKK plan to the Infrastructure Concession Regulatory Commission (ICRC)
- July 2017: ICRC approval granted
- December 2017: Federal Executive Council approved full implementation
The original financing model was structured as 85% debt and 15% equity, with funding support from China Export & Credit Insurance Corporation (Sinosure). In 2020, the Nigerian government secured a $2.5 billion loan at LIBOR + 3.7% interest, backed by a sovereign guarantee with a 12-year repayment term.
🚨 Setbacks and Funding Challenges
By April 2023, however, NNPC Group Managing Director confirmed that Chinese lenders had withdrawn from the project. The AKK’s funding now depends entirely on NNPC Limited and the Nigerian government.
To date, NNPC has spent $1.1 billion on the project—but progress remains slow. With inflation, currency pressure, and oil production constraints, funding both AKK and other energy initiatives is no longer realistic.
🛢️ Oil Exploration in the Frontier Basin: A Costly Distraction?
While AKK stalls, Nigeria continues to pour money into oil exploration in the Frontier Basin—a vast, largely unexplored region in Northern Nigeria. The Petroleum Industry Act (PIA) mandates that 30% of NNPC’s profit oil and gas revenues go into the Frontier Exploration Fund.
Historical and recent figures paint a picture of high spending with little output:
- Over ₦149.9 billion reportedly spent on seismic exploration over three decades
- In 2022 alone, ₦14.3 billion was spent in seven months from a ₦50.4 billion allocation
- Despite this, commercial oil discovery remains elusive outside Kolmani, which itself is behind schedule
In November 2022, President Buhari inaugurated the Kolmani oil field, but little economic activity has materialized since then.
📊 Project Prioritization: Why AKK Should Come First
In project management, a guiding principle is to prioritize the project with the highest Internal Rate of Return (IRR). The AKK pipeline clearly offers greater economic value:
- It connects northern Nigeria to affordable energy, powering factories, hospitals, homes, and schools
- It enhances the value of Nigeria’s southern gas assets by creating new demand zones
- It facilitates export of gas to Europe, a region hungry for alternatives to Russian energy
- It helps diversify Nigeria’s economy, especially in non-oil sectors like manufacturing and agriculture
Kolmani, by contrast, is capital-intensive, unproven, and will take years before any significant revenue is realized—if at all.
🧩 So Why Has AKK Struggled to Attract New Equity Partners?
The answer lies in Nigeria’s reputation for abandoning strategic projects midstream:
- The Ajaokuta Steel Plant remains incomplete after decades, even while four new steel projects were launched
- NNPC-owned refineries and petrochemical plants have suffered similar fates—eventually sold off or mothballed
- East-West rail and road projects are neglected while resources shift to new flashy projects like the coastal highway
The danger is clear: chasing “shiny new objects” like oil in the north can come at the expense of completing vital infrastructure like AKK.
🛑 The Cost of Splitting Focus
NNPC does not have the financial muscle to fund both the AKK pipeline and oil exploration in the Frontier Region simultaneously. Oil output is already below target, with Nigeria struggling to exceed 1.9 million barrels per day. This weakens the cash flow feeding the Frontier Exploration Fund and stretches national resources thin.
If AKK is delayed further, Nigeria will lose out on:
- Energy security
- Industrial growth
- Job creation in the north
- Revenue from regional and global gas exports
📣 Time for Strategic Project Management
What Nigeria needs now isn’t just ambition—it’s discipline and focus. The AKK pipeline has already reached a significant investment milestone. Completing it should be the country’s top priority before diverting funds to speculative ventures.
In infrastructure as in business, not all projects are created equal. AKK offers a clearer path to economic transformation than continued oil exploration in uncertain regions.
✅ Conclusion: Finish What Matters Most
The AKK pipeline is Nigeria’s best bet for energy security, economic development, and geopolitical leverage in 2025. Let’s stop chasing distractions. Let’s finish what matters.
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