The President of Nigeria, Muhammadu Buhari, has announced the reduction of gas to power prices from $2.50 to $2.18. He made this known while declaring open the 2021 Gas Sector Stakeholders (Ajaokuta-Kaduna-Kano, AKK Gas Pipeline Project) Forum in Kano on Thursday last week titled “Optimizing the Economic Development Capacity of the Ajaokuta-Kaduna-Kano (AKK) Gas pipeline Project.”
The president, who was represented by Timipre Sylva, Minister of State for Petroleum Resources, stated that the reduction is effective immediately and that it has already been notified to all key stakeholders for compliance. He claims that the project’s completion will help to reinvigorate industries and create jobs in the beneficiary states of Kano, Kaduna, and Nasarawa.
The governor of Kano state, Dr Abdullahi Umar Ganduje, the Group Managing Director of NNPC, Mele Kyari, and other dignitaries were also in attendance.
Excerpts from the Minister’s submission: “Following the successful negotiation between the Federal Government and the organized labour unions and the detailed review of the Gas pricing framework in Nigeria, the price of Gas to power has been reduced from $2.50 to $2.18 with Immediate effect.”
“The outcome of the negotiation and reviews have been communicated to relevant stakeholders.”
“The project is the focus on facilitating increase Gas Penetration in the Northern part of the country, especially the AKK pipeline corridor of FCT, Kano, Kaduna, Kogi, Niger, Nasarawa and other neighbouring states.”
“Therefore, the forum is geared towards sensitizing the entire northern parts of Nigeria of the upcoming opportunities to bring both new and hitherto moribund companies back to life.”
“Kano State alone is dotted with several industrial parks. These and others in other states justify the need to optimize value creation from these industries.”
“Experts estimate that it will take at least two to three years to rehabilitate and position these industries for optimal performance. Thus, today’s collaboration with all stakeholders is geared towards kick-starting the required activities that will guarantee full usage of the delivered gas through the AKK pipeline when completed.”
“Today’s event reinforces our commitment to realizing the inherent potentials of Gas usage as the National Catalyst for Achieving Economic Diversification from Crude oil and transition fuel from fossil fuels of today to the renewable energy of tomorrow.”
“It is this commitment that informed our support and commission of two gas-powered plants, vessel pipeline operated in Kano State in December 2020 in achieving the uninterrupted delivery of over 30 megawatts of power supply to the industrial hubs.”
“Our successful collaboration and the completion of the AKK in 2023 will significantly enhance Mr President’s vision and current drive for increase domestic gas utilization as the mainstay for national industrialization, increase foreign investment, government revenue growth and ultimately provide more job opportunities for Nigerians.”