Nigeria, endowed with over 209 trillion cubic feet of natural gas reserves, stands at a pivotal juncture in its quest to leverage this resource for national development. While the southern regions—particularly the Niger Delta—have long been the epicenter of oil and gas activity, the strategic expansion of gas utilisation to Northern Nigeria is gaining momentum. Experts believe this move promises to reshape the region’s economic landscape, drive industrialisation, and address persistent energy deficits.
Recent data from the Gas Exporting Countries Forum (GECF), Annual Statistical Bulletin 2024 underscores Nigeria’s progress: domestic gas consumption hit a 10-year high in 2023, rising by 13.2 per cent to 518.42 billion cubic feet.
According to the data, power generation was the largest consumer, accounting for 45 per cent of domestic use, followed by industrial and residential sectors. This surge, experts say, reflects the government’s push to harness gas for economic growth, reduce reliance on imported fuels, and provide cleaner, more reliable energy.
Yet, most of this growth has been concentrated in the South and West, leaving the North with limited access to natural gas infrastructure. According to energy analysts, bridging this gap is essential—not only for regional equity but also for national energy security and economic diversification.
According to the 2023 Gas Regulation, Nigeria report by ENR Advisory, over 90 per cent of Nigeria’s domestic gas consumption historically takes place in the South, especially in power generation, industry, and residential sectors.
While the Decade of Gas initiative, launched in 2021 has had a significant impact on gas penetration in Northern Nigeria, the progress remains gradual given the scale of infrastructure and market challenges.
Experts have attributed the slow gas utilisation in Northern Nigeria mainly to infrastructure deficits, although other factors like security challenges, regulatory and policy bottlenecks, and limited accessibility and affordability have impeded rapid gas deployment too.
Despite Nigeria’s vast gas reserves, the North lacks sufficient gas gathering, processing, and distribution infrastructure as virtual pipeline systems, which involve transporting liquefied natural gas (LNG) or compressed natural gas (CNG) by trucks to demand points, are still mostly deployed.
The North has long faced challenges of inadequate power supply, high energy costs, and limited industrialisation. The expansion of gas infrastructure offers a transformative opportunity.
Central to the Northern gas expansion is the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline, the largest pipeline project in Nigeria’s history. Spanning 614 kilometers, it will connect Ajaokuta in Kogi State to Kano, traversing Abuja and Kaduna.
Experts believe that the speedy completion of the AKK would be a big boost in facilitating access to gas within the regions.
The pipeline, with a capacity to transport 3,500 million standard cubic feet per day, is designed to deliver pipeline-quality gas from the South to the North, catalysing industrial clusters, power plants, and commercial ventures along its route.
The AKK pipeline, which is being executed in three phases: Ajaokuta to Abuja (200km); Abuja to Kaduna (193km) and Kaduna to Kano (221km), upon completion, will not only supply gas to key northern cities but also lay the groundwork for future extensions, potentially connecting Nigeria to North Africa.
Actual construction work on the AKK pipeline project commenced in July 2020, though it was first mooted in 2013, was initially scheduled for completion in the first quarter of 2023.
After two missed completion deadlines, experts say the major hurdles have been scaled with the recent announcement by the Nigeria National Petroleum Company Limited (NNPCL) and Oilserv group of successfully laying pipelines across the River Niger.
It is against this background that the federal government’s final announcement of commencement of construction work on the Ajaokuta-Kaduna-Kano (AKK) gas pipeline in mid-2020 was seen as a step in the right direction.
The project valued at $2.8 billion was initially expected to enjoy 85 per cent financing by the Chinese export bank but it was not to be due to disagreement. However, through creative ingenuity of the management of NNPCL and the contractors handling the project, it was not allowed to stall.
Prior to the 2020 public declaration of the commencement of the AKK gas pipeline, Oilserv Nigeria Limited, a subsidiary of Oilsrv Group, in April 2018 secured the contract for the engineering, procurement and construction (EPC) of the phase 1 of the 614-kilometer made up of 303-kilometer segment of the project.
The NNPC Ltd group chief executive officer of NNPC Ltd, Engr. Bayo Ojulari, at the 24th NOG Energy Week (NOG), held recently in Abuja, announced that the AKK gas pipeline successfully crossed the River Niger, boosting the hope of the project’s completion by the fourth quarter of 2025.
Ojulari explained that the feat was achieved through effective and innovative contract reengineering and industry collaboration.
Expatiating on the feat, the chairman/group chief executive officer (GCEO), Oilserv Group, Dr. Emeka Okwuosa, noted that in spite of its popularity not many understood the work that needed to go into it to make it a reality.
“Although many people may not fully understand its scope. AKK stands for the Ajaokuta–Kaduna–Kano pipeline, which is a 614-kilometre gas transmission pipeline. Oilserv is responsible for constructing 303 kilometres of that, effectively half the route, stretching from Ajaokuta to the border between Kaduna State and Niger State”, he said.
“This project is a crucial element of Nigeria’s Gas Master Plan. Other elements of that plan have already been developed and are operational — for example, the Escravos–Lagos pipeline and the OB3 pipeline, which is a 48-inch large-diameter line. Oilserv was responsible for constructing half of that OB3 pipeline, which has been operational for more than four years now and is successfully transporting gas.
“The AKK pipeline is another vital segment of this master plan. Ultimately, a further pipeline will be built from the South to connect to Ajaokuta, completing the grand transmission grid envisaged by the Gas Master Plan.”
Oilserv said it utilised the Horizontal Directional Drilling (HDD) method as a trenchless technology for installing underground pipelines, cables, and conduits with minimal surface disruption. This approach is particularly effective for crossing obstacles such as rivers, roads, railways, and environmentally sensitive areas, where traditional open-cut methods would be impractical or damaging.
Oilserv combined HDD with microtunneling to offer Direct Pipe Installation (DPI), a one-pass trenchless technique that simultaneously excavates the borehole and installs the pipeline, further increasing efficiency and minimising ground disturbance.
Dr. Okwuosa said the concept is similar to what was done for the Channel Tunnel between England and France, noting that the Channel Tunnel carries trains, the one his firm constructed is for a pipeline which will carry gas.
Dr. Okwuosa said that the company had earlier used the same HDD method to cross the Pai River, which is around one kilometre wide.
“With HDD, you pass through varying formations of consolidated rock, clay, gravel each posing technical challenges crossing a river of this size with HDD is rare globally and is a major engineering achievement,” the AKK project engineer, Engr. Gbola Adeniyi emphasised.
“You cannot leave a welded pipeline lying on the surface, so you must properly bury it for protection. These conditions have certainly tested us, but working closely with NNPC, we have been able to overcome them,” he stated.
Experts have hailed Oilserv on the execution of as they noted that at the peak of the execution, over 2,000 workers were employed
“At the peak of the AKK project, we had over 2,000 people working directly with Oilserv, in addition to thousands more engaged through vendors, subcontractors, and partners,” Dr. Okwuosa explained.
The Oilserv helmsman further explained that its consistent record of respecting communities and maintaining a positive relationship played a crucial role in the execution of the project.
He said, “We believe in respecting these agreements. If you fail to deliver on what you promise, you will struggle to return to those communities in the future.”
While many Nigerians may not admit the negative impact of insecurity on projects such as this, the chief of staff to Dr. Okwuosa, Cephalus Wariri gave an insight on what happened during the project execution.
“Security has been a major issue. Over the past five years, security in many parts of the country has deteriorated. During this project, we have faced security incidents, including, tragically, the loss of lives. Each time an incident occurs, work has to pause, security plans must be reviewed, and collaboration with government security agencies intensified,” he stated.
“The security challenges have fundamentally changed the way we work, ” he said. “Twenty or twenty-five years ago, you might leave camp by 5.30 a.m. and work until 7 p.m., returning by 8 p.m. Today, due to security risks, you cannot leave camp before about 7.30 a.m., once the security agencies have cleared the area, and you must return by 4 p.m.
“This shortens the working day, which has a direct impact on project schedules. Moreover, security itself is a massive operation. Sometimes we have more security personnel than workers at a particular site, including military, police, civil defence, and even local hunters familiar with the terrain. It all adds to the complexity and cost of the project, but it is absolutely essential.”
Dr. Okwuosa however acknowledged the critical role of various stakeholders in tackling the issue. “We have had invaluable support from the Nigerian military, the police, the Department of State Services, and of course our client, NNPC. Without that, this project could never have progressed.”
According to Dr. Okwuosa, the African Export-Import Bank (Afreximbank) proved to be a dependable ally in critical times.
He explained that over the course of their business, Oilserv has developed partnerships with many financial institutions, both Nigerian and international. He said Fidelity Bank Plc stood with the company all through.
While commending Afreximbank, he insisted that the bank is particularly significant among other financial institutions the firm relates with in finding the project. It is a multilateral African financial institution whose mission is to support, finance, and develop projects across Africa.
To show that the relationship is mutually beneficial, Afreximbank recently honoured Oilserv Group with an award of “African Champion.”
“The process to qualify is rigorous, but we succeeded. Oilserv is the only Nigerian EPC company recognised as an African Champion by Afreximbank.
“This means Afreximbank will actively work with us, not just for financing, but as a transaction advisor and a partner to develop projects across Africa. At the moment, we are working together on several gas-based industrial facilities. These will become more visible in the next year or two.
“So, yes, being recognised as an African Champion by Afreximbank is a significant achievement, and one we are immensely proud of,” he stated.
While some Nigerians may have been critical and doubtful of the actual completion of the AKK gas pipeline project, the successful crossing of the River Niger and assurance from Oilserv Nigeria Limited that it has accomplished 85 per cent of its 303-kilometer stretch despite all the hindrance has rekindled hope that the project would be completed.
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