The Chief Executive Officer of the Nigerian National Petroleum Company Limited, Mele Kyari, reported that the construction of the Ajaokuta-Kaduna-Kano gas pipeline project has cost $1.1bn out of the total projected cost of $2.8bn.
He made these remarks during his visit to the facility located in Akoho village, which is situated in Kogi State.
Kyari also stated that the pipeline will be operational by the third quarter of 2023.
He said, “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.”
According to Kyari, the Nigerian National Petroleum Company Limited has undergone significant changes and is now operating as a commercial entity.
The company has internal loans and can finance its projects without external support.
Therefore, the NNPC does not require assistance for its current project and will complete it independently.
Kyari also stated that the NNPC has already settled all outstanding invoices from its contractors, and it has no debts to repay.
There are over 30 sites that are active today in this project and we are very optimistic that we will deliver this project,” Kyari further stated.
The Punch reported on April 18 that the AKK natural gas pipeline project has reached a completion rate of 43%, as announced by the Vice President of Nigeria, Prof. Yemi Osinbajo, during a function in Abuja.
Osinbajo highlighted that the project is a significant initiative of the administration of President, Major General Muhammadu Buhari (retd.). administration.
The project, which has a total cost of $2.8bn, is being funded by the Bank of China and Sinosure, a Chinese export and credit insurance corporation.
The President flagged off the construction work through a virtual conference that took place in July 2020, starting at the Ajaokuta and Kaduna camp sites simultaneously.
