China Approves $2.6 Billion Loan For Nigeria To Complete AKK Gas Pipeline Project

The Federal Government on Tuesday announced that China has approved the 85 percent loan required to fund the $2.6bn Ajaokuta-Kaduna-Kano (AKK) gas pipeline project.

The Minister of Finance, Budget and National Planning, Zainab Ahmed, disclosed this during the inspection of the project in Ajaokuta, Kogi State.

She expressed optimism that the project will be delivered by 2023, adding that the project will create jobs for Nigerians and open up the economic space for industrialization.

“We are here to see the work that has been done. This a very important national project, and to see this project is being delivered on time and of course despite the slowdown in economic activities this project has not slowed down, even work has not stopped for one day.

“We are glad that gas is being piped to Ajaokuta, Kaduna to Kano. This project in this part of the country will create jobs, even now that work is going on locals are being employed. The contractor is doing a quality and excellent job, and we commend NNPC for implementing this project.

“We have to give a sovereign guarantee to the lender so that the loan is concluded. I am glad to say the loan has been concluded. And very soon the disbursement will start to the contractor. For now it is $2.5 billion.”

The AKK pipeline project, flagged off in July this year, is 85 per cent funded by the Bank of China and Sinosure, a Chinese export and credit insurance corporation, while the Federal Government, represented by the Nigerian National Petroleum Corporation (NNPC), provides 15 per cent equity.

KanyiDaily had reported yesterday that the World Bank also approved Nigeria’s request for a $1.5 billion loan, to boost the country’s efforts to reduce poverty.