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AKK Gas Pipeline Construction Allegedly Stalls Over Funding, Inflated Contract

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By Adedapo Adesanya

One of Nigeria’s promising projects touted to boost its oil and gas industry, the Ajaokuta-Kaduna-Kano (AKK) gas pipeline project, may have been abandoned as financers cannot work with the project’s bloated contract.

According to Guardian Nigeria, the AKK gas pipeline project has been stalled, as there is no funding to cover the cost of the second and third phases from Abuja to Kaduna and Kaduna to Kano after it was discovered that the contract cost was inflated by over 570 per cent.

This is in contrast to the value for projects in Mexico, Argentina, and Chile, among others, a source close to the decision-making told the publication.

“Globally, the cost of high-pressure transmission gas pipelines is built at $800,000 per kilometre. In Nigeria, the Final Investment Decision (FID) for EPC was scheduled at $4,560,260 million, which is a 570 per cent inflation above global standards,” it reported.

The federal government inaugurated the AKK gas pipeline, which spans a length of 614 kilometres in 2021, to transport natural gas from Ajaokuta, Kogi state, through states and urban centres in Nigeria.

Infrastructure and Commercial Bank of China (ICBC), Infrastructure Bank of China, and China Export Credit Agency (SINOSURE) – were to provide 85 per cent or $2.38 billion funding requirement. Their Nigerian counterparts, Oilserve and Oando, were to balance the 15 per cent or $420 million.

But the Guardian source revealed that “These companies cannot afford to go into cahoots with Nigerians because they would be easily caught when they submit their financial reports to their countries of origin.”

The project was initially expected to be completed in the first quarter of 2023 after several drawbacks and delays.

It was also revealed that the Nigerian National Petroleum Company (NNPC) Limited, through the Nigeria Gas Transport Processing Company (NGTPC), had attempted to bridge the funding gap but to no avail.

“Assuming the imports are not waived, the cost of duties and tariff at the ports would not exceed 15 per cent of $268,337,369 million or $40,250,605 million ($308,587,974 million), which is 11 per cent of the EPC that was scheduled for this project and gives you an insight into why the firms quit,” the source revealed, speaking on task waivers granted to Engineering, Procurement and Construction (EPC).

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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National Albinism Day: AAN Reiterates Call for Inclusive Policy

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By Adedapo Adesanya

As Nigeria marks National Albinism Day, the Albinism Association of Nigeria (AAN) has reaffirmed its commitment to advocating for the rights, health, and inclusion of persons with albinism (PWAs), urging the government and relevant stakeholders to adopt inclusive policies that address their unique challenges.

Established in 2019, AAN has been at the forefront of championing the welfare of persons with albinism across the country. Through targeted advocacy, education, and partnerships, the association has significantly contributed to increased societal acceptance, reduced school drop-out rates among children with albinism, and greater attention to their health needs at national forums.

According to the organisation, this year’s theme, Protect Your Skin, Be Sun Smart underscores the pressing need to address the health vulnerabilities of PWAs, especially those resulting from sun exposure. Due to the absence of melanin—the natural pigment that protects the skin from harmful ultraviolet (UV) rays—persons with albinism are prone to painful sunburns, premature skin aging, vision problems, and an increased risk of skin cancer.

AAN emphasized preventive measures such as the regular use of broad-spectrum sunscreen (SPF 30 or higher), wearing protective clothing including wide-brimmed hats and sunglasses, avoiding peak sunlight hours, and seeking routine medical checkups for early detection of skin conditions.

In a statement shared with Business Post, Mrs Bisi Bamishe, National President of AAN, made a strong appeal to the government:

“We are calling on the Nigerian government to include sunscreen in the list of essential medicines under the National Health Insurance Scheme (NHIS). Sunscreen is not a luxury for persons with albinism—it is a necessity for survival.”

She further stressed the need for more tangible support

“Government should provide free or subsidized protective gear and health services to persons with albinism, especially in rural and underserved areas.”

Highlighting the importance of awareness and capacity building, Mrs. Bamishe said, “We urge health workers and teachers to receive proper training on the specific needs of persons with albinism. This will go a long way in improving service delivery and reducing stigma in schools and health centres.”

She also emphasized the importance of legal protections.

“The Discrimination Against Persons with Disabilities (Prohibition) Act must be enforced. It is not enough to have laws on paper; we need full implementation to ensure justice and inclusion.”

“We call for public education campaigns to reach deep into rural communities where harmful myths and stereotypes still persist. Awareness is key to acceptance.”

AAN also stressed the need for capacity building initiatives to empower community advocates and peer support systems.

As National Albinism Day is observed, AAN urges Nigerians to stand in solidarity with persons with albinism and work collectively to create a more inclusive, informed, and equitable society.

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Tinubu to Meet Gencos Tuesday Over N4trn Power Debt

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By Adedapo Adesanya

President Bola Tinubu will meet with the leadership of electricity-generating companies (GenCos) over the N4 trillion power sector debt on Tuesday, May 6.

This was disclosed by the Special Adviser on Strategic Communications and Media Relations to the Minister of Power, Mr Adebayo Adelabu, who noted that the federal government vowed to urgently address the debt following high-stakes talks between the Minister and chairmen of the power generators in Abuja recently.

He said FG’s intervention was aimed at averting an imminent collapse of the power infrastructure in the country.

Recall that the Minister also promised that the FG will pay 50 per cent of the debt recently.

According to the statement, the Minister assured the GenCos executives that the government would prioritise immediate payment of a significant amount out of the N4 trillion debt, while the balance would be defrayed through other debt instruments.

He said this would be proposed in a meeting being planned between President Tinubu and GenCos’ leadership.

“There is need to pay a substantial amount of the debt in cash. At the minimum, let us pay a substantial amount, then ask for a debt instrument in promissory notes to pay the rest,” he stated, assuring that the payment of the outstanding balance within six months through financial instruments such as promissory notes.

“We recognise the urgency of this matter. The government is committed to resolving this debt to stabilise the sector and prevent further crisis,” Mr Adelabu stated, adding that the President will meet with GenCos leadership to fast-track the process.

The GenCoS were led by the Chairman of Mainstream Energy Solutions, who is also the Chairman of the Association of Power Generating Companies (APGA), Mr Sani Bello, who had earlier sounded the alarm over the sector’s dire state, citing the N4 trillion debt as a critical threat to operations.

He also warned that liquidity challenges had left GenCos unable to secure loans or maintain infrastructure. “Without urgent intervention, the entire power ecosystem could collapse,” he stressed.

Mr Kola Adesina, Chairman of Egbin Power and First Independent Power Limited, echoed the urgency: “This is a national emergency. Everything hinges on power—industries, homes, hospitals. We cannot afford to let the sector fail.”

Mr Adelabu acknowledged the government’s role in the sector’s struggles, pledging to not only clear the debt but also implement reforms to ease operational bottlenecks. He emphasised the need for full liberalisation of the power sector, urging Nigerians to embrace cost-reflective tariffs.

“Citizens must pay the appropriate price for the energy consumed. The Federal Government will continue to provide targeted subsidies for economically disadvantaged Nigerians. We have to understand that our economy cannot sustain subsidies indefinitely,” he asserted, calling for public sensitisation campaigns to drive compliance.

On her part, Mrs Joy Ogaji, CEO of APGC Power, detailed systemic challenges undermining GenCos, including chronic payment defaults, erratic gas supply, and foreign exchange volatility.

She noted that the naira’s plunge from N157/$1 in 2013 to N1,600/$1 had devastated maintenance budgets and loan repayments.

“GenCos have borne unsustainable risks—from grid failures to unproductive taxes—while remaining patriotic,” she said.

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Nigerians Must Prepare for Another Electricity Tariff Hike—FG

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By Modupe Gbadeyanka

The Minister of Power, Mr Adebayo Adelabu, has advised Nigerians and electricity consumers in the country to brace up for another hike in tariff because the federal government is not buoyant enough to continue to bear the cost of subsidy on electricity.

Speaking at a meeting with the Chairmen of the Generating Companies of Nigeria (GenCos) in Abuja, Mr Adelabu said consumers will soon begin to pay cost-reflective tariffs.

At the moment, customers on Band B to E enjoyed subsidised electricity tariffs and pay between N68 per kilowatt per hour and 34 per kilowatt per hour (VAT inclusive), while those on Band A, who consume power for at least 20 hours per day, pay about N225 per kilowatt per hour (VAT inclusive).

At the meeting with the GenCos, the Minister hinted that consumers on Band B downward may have to pay more, which could match the Band A tariff.

“We have to understand that our economy cannot sustain subsidies indefinitely,” Mr Adelabu informed the chairmen without giving a specific time when a new rate will be announced.

During the meeting, the chairman of Egbin Power, Mr Kola Adesina, tasked the government to declare a state of emergency in the power sector, noting that the N4 trillion owed GenCos by the federal government remains a critical threat to their operations.

“This is a national emergency. Everything hinges on power—industries, homes, hospitals. We cannot afford to let the sector fail,” he stressed.

Also, the chairman of Mainstream Energy Solutions, Mr Sani Bello, warned that “without urgent intervention, the entire power ecosystem could collapse.”

In the same vein, the chief executive of the Association of Power Generating Companies (GenCos), Ms Joy Ogaji, said, “GenCos have borne unsustainable risks—from grid failures to unproductive taxes—while remaining patriotic.”

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