The Gas Aggregation Company Nigeria Limited (“GACN”), the Nigerian National Petroleum Corporation (“NNPC”) and the Kaduna State Government (“KDSG”) on Thursday, 26th August, 2021, signed a Memorandum of Understanding (“MOU”) to expand gas supply and utilisation in Kaduna state. The signing ceremony which was hosted by the Kaduna State Government at the State Government house was attended by the Kaduna State Governor, Mallam Nasir Ahmad El-Rufai, the Group Managing Director of NNPC, Mallam Mele Kolo Kyari, the Group Executive Director, Gas & Power-NNPC, Mallam Mohammed Abdulkabir Ahmed, the Managing Director of GACN, Mr. Olalekan Ogunleye amongst other high-profile attendees.
While speaking at the signing ceremony, Mallam Kyari noted that the Ajaokuta-Kaduna-Kano gas pipeline (the “AKK Pipieline”) will be delivered on schedule. He added that the completion and commissioning of the AKK Pipeline will be a game changer for Nigeria particularly for Kaduna State as no community will be exempted from the massive economic benefits which the AKK pipeline poses to offer. He further noted NNPC’s commitment to domestic gas expansion in Nigeria while adding that the Federal Government of Nigeria has recently revised the gas pricing framework to ensure affordability and accessibility of gas to consumers in Nigeria. Mallam Kyari also confirmed the workability of the gas pricing framework as he noted that gas is already being delivered to some parts of the country.
Mallam El-Rufai, while emphasising the relevance of gas to Kaduna state noted that the supply of gas to Kaduna state will provide an additional source of energy for residents and businesses, especially industries that have responded with enthusiasm to the state’s investment promotion campaign while simultaneously creating jobs for the citizens. He further disclosed that the state government has worked assiduously to create two new industrial areas since 2015, namely; the Green Economic Zone (GEZ) which is being developed as an industrial park for light manufacturing industries in the Igabi local government area of the state and the Green Agro-Allied industrial zone (GAAIZ) which is already hosting investments like the Olam project in the chikun local government area of the state. He also noted that the African Development Bank (“AFDB”) will be financing the Special Agro-Processing Zone (“SAPZ”) within the GAAIZ. He thanked GACN and NNPC for their time and efforts towards increased gas commercialization in Kaduna state.
Mr. Ogunleye in his remark, appreciated the commitment, efforts and enthusiasm of NNPC and the KDSG towards economic development through gas expansion. He gave his reassurance that GACN will do all that is required to ensure affordable gas supply to credible consumers in Kaduna state while noting that the decade of gas is here to stay.