Nigeria seeks $1bn for AKK gas pipe amid Chinese funding delays
Nigeria is searching for $1bn in financing to support further work on the $2.8bn Ajaokuta-Kaduna-Kano (AKK) gas pipeline, amid delays with the disbursement of funds promised by Chinese lenders, Reuters reported on July 16 citing sources.
Negotiations with Bank of China and Sinosure to secure $1.8bn of funds continue, Reuters said. Chinese lenders were originally expected to cover the bulk of the project's cost.
Construction of the pipeline, which will carry up to 56mn m3/day of gas from domestic fields to planned power plants in the Aduja, Kaduna and Kano states, began in July last year. But so far the work has been funded by Nigerian state oil company NNPC, which is set to cover 15% of its cost.
AKK is set to play a central role in Nigeria's plan to expand the role of gas in its economy, from sectors like power generation and heavy industry to petrochemicals, road transport and household cooking.