• Lenders fear further exposures
• Kyari confident on delivery

Plans by the Federal Government to construct a $2.8 billion Ajaokuta-Kaduna-Kano (AKK) gas-power pipeline may have suffered setback, as the project is far from its 2023 completion deadline and commissioning.

This is against the backdrop of the Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kolo Kyari’s insistence that the project would be delivered on schedule.

Iledare urges Nigerians to change the ways and manners in which they perceive public projects

While responding to allegations that Chinese funding for the project had dried up and that the Federal Government was frantically sourcing for new funding for the $2.8billion pipeline contracts, Kyari described the allegations as spurious and baseless, claiming that the government would deliver the project as promised in 2023.

On the other hand, findings have revealed some stakeholders expressing their displeasure over the issue, claiming that the project may not come to fruition as early as promised by the government. Reasons, they said, were borne out of bad economic situation and attendant poor liquidity in the country. Coupled with this are problems such as indecision by operators of the project as well as insecurity in the country among others.

Those who spoke to New Telegraph on the issue feared that Nigeria was currently overwhelmed with problems and may not be able to complete the AKK infrastructure in time.

A former President, Association of International Energy Economists (AIEA), Prof. Wunmi Iledare, has, however urged Nigerians to change the ways and manners in which they perceive public projects, arguing that until citizens change their mindset, many of such projects would not come to life. He said many believe that the AKK project belonged to northern Nigeria only, due to its location.

Iledare, a Professor of Petroleum Economics and Energy Research, said negative perception was killing and capable of stalling any public spirited projects, which the government is embarking on.

He noted that the country had some gas projects being put in place to minimise problems facing the energy sector, especially generation, but were killed, arguing that AKK project might follow similar trend. Similarly, a stakeholder, who preferred anonimity said the government was wasting its time, as it does not have resources to finance the project.

He added that foreign banks and other lending institutions were not ready to expose themselves further on such projects. He described Nigeria as a high-risk zone to invest in, due to the fact that the country grapples with activities of insurgency.

It would be recalled that President Muhammadu Buhari launched the AKK gas-power pipeline project in 2020, with a view to improving gas supply to the domestic market and upon completion, further add 3,600 megawatts of electricity to the national grid.

The project which is being overseen by the NNPC, has a timeline of 24 months to be completed. In addition, the project is divided into three phases in order to enable contracztors enjoy a seamless operation.

SOURCE: newtelegraphng.com