The President of the Federal Republic of Nigeria, Muhammdu Buhari, will flag off the construction of a $2.8 billion Ajaokuta-Kaduna-Kano (AKK) gas pipeline on 30th June, 2020.
The Minister of State, Petroleum Resources, Chief Timipre Sylva disclosed this on Tuesday in the country’s Federal Capital Territory during the inauguration of a Committee on Gas Sector-wide Review of the Domestic Gas Pricing Framework. The committee is tasked with the evaluation and review of the price of gas.
The 614 kilometre-long pipeline is currently being developed by the national oil company of Nigeria, the Nigerian National Petroleum Corporation. Chief Sylva said that there was a need for revamp of the manufacturing industry, the citizens of the country, and the entire gas sector.
In his words, “Without appropriate pricing, we can’t get it right. We have to ensure that gas becomes affordable. It is sad to note that we sell gas cheaply to investors while the price is high in the domestic market to the extent that some Nigerians say diesel is cheaper than gas.”
He said that the country has a lot of gas deposits that could generate a lot of revenue, citing that if Nigeria could solve the gas problem, all the problems in the country would be solved.
Sylva said that the committee was to review domestic gas price and benchmark, recommend an appropriate gas price for the gas sectors, evaluate and give technical suggestions and it had 30 days to submit its report.
Speaking on behalf of the committee, the Chairman of the committee, who is also the Chief Operating Officer Gas and Power, Yusuf Usman, thanked the Minister for the opportunity to serve and pledged the commitment and willingness of every member of the committee to adhere to the global standards and deliver beyond expectations within the given time frame.
