Nigeria’s landmark Ajaokuta–Kaduna–Kano (AKK) gas pipeline is pressing forward through a web of security, engineering and financing challenges, with Oilserv, one of the country’s most prominent indigenous engineering, procurement and construction (EPC) contractors, committed to delivering its critical segment in December.
The 614-kilometre pipeline is the backbone of Nigeria’s Gas Master Plan, intended to boost domestic gas availability, support industrial growth and help stabilise electricity generation in the country’s northern zones. Oilserv is responsible for Segment One, stretching 303 kilometres from Ajaokuta to the Kaduna-Niger border, while Brentex Construction Limited is handling the remainder to Kano.
The terrain of Segment One, according to the contractor, traverses through a patchwork of rock, valleys, swamps and sandy clay soils, demanding complex excavation and engineering solutions.
Crossing the River Niger more than two kilometres wide at the crossing site proved especially formidable.
Chairman of Oilserv, Dr Emeka Okwuosa said crossing the Niger with a 40-inch pipeline was one of the greatest challenges.
Okwuosa said: “We could not use dredging or open-cut methods because of environmental concerns. Instead, we deployed horizontal directional drilling under the riverbed, much like what was done with the Channel Tunnel, to protect the river and the communities who depend on it.”
A similar HDD technique was used to cross the Pi River in Niger State, minimising impacts on ecosystems and local livelihoods. Yet even away from river systems, the AKK route through Kogi State, for example, has forced Oilserv to blast through hard rock to bury pipes to meet safety codes.
Security threats have posed an equally stiff challenge. Parts of North Central Nigeria have seen repeated attacks on workers, including a three-month suspension of operations after kidnappings, as well as violence around Shiroro that forced renewed security interventions.
“We have lost colleagues to these incidents,” Dr Okwuosa acknowledged, adding, “That changes how you work. You can no longer start at 6 a.m. and go until dusk. Now you must wait for the security forces to clear the site every morning, and you must return before nightfall.”
It shortens the workday, costs money, and delays progress, but we cannot compromise on safety.”
These security protocols have required the deployment of over 520 military personnel, supported by local security teams, to protect workers and equipment.
Logistics have added further hurdles. The thousands of 12-metre pipes required for the build are each massive in weight and must be transported on difficult rural roads that turn to mud during the rainy season. Each truck can carry only two or three pipes, demanding a huge convoy and precise scheduling to keep the project moving.
According to Project Manager for Oilserv, GbolaAdeniyi, the River Niger crossing in June 2025 was “the culmination of three months of continuous effort after three previous failed attempts. We knew this was a make-or-break milestone because, without it, the whole backbone of Segment 1 would have been stuck, just like the OB3 project for years.”
With Segment One now reported to be around 83.6 per cent complete, and the overall AKK scheme nearing 72 per cent, confidence is growing that the December 2025 commissioning target remains achievable.
On the financial side, the project’s fortunes have been turbulent. Initial plans to secure syndicated external loans from China collapsed, forcing the Nigerian National Petroleum Company Limited (NNPC) to resort to internal funding. Under this arrangement, Oilserv must finance each milestone and later recover costs from NNPC, putting enormous pressure on the company’s working capital.
Okwuosa noted that the arrangement was demanding but workable after fully committing to seeing the project delivered.
Key financial partners have also kept the project afloat. Afreximbank has supported the transaction structure, while Fidelity Bank, which industry sources say handles over 90 per cent of the payment flows, has been pivotal in sustaining cash flow to pay wages, vendors and security contractors.
