The Nigeria National Petroleum Company Limited (NNPCL) has signed a Memorandum of Understanding (MoU) with China Engineering and Machinery Corporation (CEMC) to co-fund the Gwagwalada Independent Power Plant (GIPP) project. The announcement was made on X (formerly Twitter) by NNPCL, which highlighted the significance of the project for Nigeria’s economic development.
The partnership between NNPCL and CMEC signals the growing international collaboration in Nigeria’s energy sector, as the country works toward its goal of becoming a major gas hub in Africa.
NNPCL’s Executive Vice President, Gas Power & New Energy, Mr. Olalekan Ogunleye, and the Chairman of CMEC Nigeria, Mr. Zhang Daguang, represented their respective companies at the signing ceremony in Beijing. The partnership aims to deliver the first phase of the 350MW GIPP, also known as the Abuja Independent Power Plant.
The GIPP is one of the flagship projects of the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline Project, which is part of Nigeria’s Gas Master Plan. The MoU aligns with the country’s strategy to boost power generation capacity and reduce gas flaring while promoting industrial development.
The project, once completed, is expected to generate jobs, improve power supply, and drive industrial growth across the country, particularly in Northern Nigeria. It will also provide a much-needed alternative to traditional energy sources, contributing to the reduction of deforestation and environmental degradation.
The $2.8 billion AKK Gas Pipeline Project plays a critical role in Nigeria’s energy sector. Spanning 614 kilometers, the pipeline will transport natural gas from Ajaokuta in Kogi State to Kano, with intermediate gas facilities along the route.
The AKK project is designed to meet the increasing demand for gas-based industries and power supply in Abuja, Kaduna, and Kano. It forms a key component of the country’s energy transition, offering cleaner alternatives for electricity, cooking, transportation, and industrial use.
NNPCL aims to complete the GIPP Phase 1 project by the first quarter of 2025. This power plant, together with the AKK pipeline, will help transform Nigeria’s energy landscape, reduce gas flaring, and strengthen the country’s power infrastructure.