Major stakeholders in the gas sector converged in Kano to dissect the economic development capacity of the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline project, a flagship project of the federal government towards realising the objectives of its “Decade of Gas” agenda.
The forum was organised by the Gas Aggregation Company of Nigeria (GACN) and the Nigerian National Petroleum Corporation (NNPC) with the theme: “Optimizing the economic development capacity of the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline project.
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Declaring the forum, the Minister of State for Petroleum Resources, Chief Timipre Sylva said the forum is geared towards sensitizing the Northern part of Nigeria of the opportunities that will come with the revamping of moribund industries in Kano and other states in the corridor of the pipeline.
The minister noted that experts have estimated that it will take two-three years to revamp these industries to function at an optimal level and this will come at the right time when the AKK project is delivered in 2023.
He said the forum was yet “another demonstration of the federal government’s total commitment to the realization of the objectives underpinning the ‘Decade of Gas’ declaration”, noting that this was similar to another engagement organised by the GACN in 2020 in Owerri, Imo state aimed at market sensitization on the harnessing of gas utilisation/commercialisation opportunities within the Southeastern region.
He noted that the commitment towards diversification influenced the government’s support in the commissioning of two gas plants in Kano city in December, 2020 which achieved the “uninterrupted delivery of over 30 megawatts (MW) of power supply to the industrial hubs”.
FG slashes price of gas to power to $2.18/scuf
He also used the occasion to announce the slashing of the price of gas to power from $2.50 to $2.18/Standard cubic feet (scuf) with immediate effect, noting that the reduction was an offshoot of a negotiation between the federal government and the organised labour.
Responding to the overtures of the federal government in his goodwill message, the Minister of Power, Mamman Sale, who was represented by Abba Aliyu, his Special Assistant on Policy, noted that the power sector uses more than 60% of the gas currently generated in the country to generate electricity and as such, the price reduction will assist the federal government’s goal of delivering sustainable power for the country.
Also speaking, the Group Managing Director (GMD) of the NNPC, Mallam Mele Kolo Kyari said “gas means prosperity and delivering gas means an opportunity to create jobs”, assuring that the project will be delivered as planned.
He said the project, as soon as it is delivered, will spring up about 232 industries across the corridor and create massive job opportunities, which he estimated will be as much as a million jobs.
He assured that the “project materials are coming on time and on schedule; as we speak now, we have over 200km of land pipes in our hand… and construction works are going on. Therefore, we are sure that this project will be delivered, it will not be a white elephant project.”
In his opening address, the Chairman of the Board of GACN, Engr. Mansur Sambo stressed that the AKK pipeline is meant to revamp the vibrancy of the industrial sector and commercial activities especially in Kano, which he added is the nerve centre of commerce in Northern Nigeria.
“We chose Kano, not by accident but principally because Kano has always served as a city where buyers are merged together with sellers. We recognise Kano as a centre that will spring up the utilisation of gas especially in northern Nigeria.
Also stressing the importance of the choice of Kano, the Minister of Finance, Budget and National Planning, Zainab Ahmed said with over 350 large and medium scale industries that are operating in Kano’s four industrial layouts, investing in the state along with other states in the pipeline corridor is a business no-brainer.
166 industries functional, 201 ‘virtually’ dead in Kano — Ganduje
Speaking more on the economic viability of Kano state, the state governor, Abdullahi Umar Ganduje noted that with peace and stability a key ingredient for investment, the state government has continued to prioritise ensuring peace and stability as a part of its strategy to engender investment, declaring that as of today, Kano is the most peaceful state in the country.
Of the industrial layouts highlighted by the Minister of Finance, Ganduje said the state government has undertaken a research to know the industries that are operative and the ones that are dead but can be brought alive with the coming of gas.
He added that with the Dala Inland Dry Port in the state being targeted for commissioning by the end of the year, the over 150 rice processing mills and the “commissioning of a new industry in Kano almost every other month”, when the AKK project and the rail system finally become reality, Kano is going to be the commercial nerve centre of West Africa.
He also said with the highest number of homes in the country as well as an ever-increasing population, domestic use of gas will also be optimised.
Daily Trust reports that the governors of Kaduna, Nasarawa, Niger and Kogi states also made presentations during the forum where they outlined why investors should consider their states as the AKK project gradually becomes a reality.
Lack of jobs cause of insecurity — Dangote
During the panel discussion on “Concrete steps to optimise the benefits of AKK”, the President/CEO of Dangote Group, Alhaji Aliko Dangote noted that “without AKK, there is no way we can meet the target of Mr President (Muhammadu Buhari) of creating 100 million in 10 years.”
He advised that the Nigerian Gas Marketing Company should start marketing the AKK potentials to investors, which he believes will help “to eliminate both the kidnapping, the banditry because these are all caused because of lack of jobs. These will create millions of jobs.”
He also advised northern governors to look into the policies they implement in their states to bring more investments for their state.
Also speaking, Dr. Mairo Mandara, an obstetrician/gynaecologist, who spoke on the human development of the project, charged civil societies to help the government to ensure timelines are respected.
She noted that the pipeline is still a mirage until gas flows in it, stressing that political will must be strengthened especially as the year of delivery for the project coincides with election.
The Managing Director and CEO of GACN, Olalekan Ogunleye assured that the company will continue to engage with stakeholders to ensure optimal utilisation of the opportunities provided by gas. He said the framework on the ground will ensure that every serious investor that wants gas gets it.
Daily Trust reports that the forum had in attendance several dignitaries, including the Emir of Kano, Aminu Ado Bayero; Emir of Bichi, Nasiru Ado Bayero; top management of the NNPC and other departments and agencies in the oil and gas sector as well captains of industries, the Manufacturers Association of Nigeria (MAN), and private investors in the gas energy industry.
