The Nigeria National Petroleum Company Ltd (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. This agreement marks a significant step in Nigeria’s efforts to boost its power generation capacity and support economic growth.
The MoU was signed by NNPC’s Executive Vice President of Gas Power & New Energy, Mr. Olalekan Ogunleye, and CMEC Nigeria’s Chairman, Mr. Zhang Daguang. The Gwagwalada IPP, also known as the Abuja IPP, is a key component of the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline Project, aligning with Nigeria’s Gas Master Plan infrastructure blueprint.
The 350MW GIPP Phase 1 Project is expected to enhance power generation, create jobs, reduce gas flaring, and promote industrial development in Nigeria. Once completed, it will provide a reliable energy source for power generation, cooking, transportation, and industrial use, particularly in Abuja, Kaduna, and Kano.
The AKK Gas Pipeline Project, led by NNPC, is a $2.8 billion initiative designed to strengthen Nigeria’s gas pipeline infrastructure. It includes a 40-inch, 614-kilometer pipeline running from Ajaokuta to Kano, with intermediate and terminal gas facilities along its route. This project aims to meet the rising power demands and support gas-based industries across the country.
The pipeline is expected to reduce deforestation rates by offering an alternative energy source, reshaping Nigeria’s energy sector. NNPC projects the completion of the Gwagwalada IPP around the first quarter of 2025.
This collaboration with CEMC is part of NNPC’s broader strategy to enhance Nigeria’s energy infrastructure and support sustainable development. By leveraging international partnerships, NNPC aims to address the country’s energy challenges and drive economic growth.
The Gwagwalada IPP is one of several power projects along the AKK corridor, contributing to a cumulative power capacity of 3,600MW, which includes other projects like the Kaduna IPP (900MW) and Kano IPP (1,350MW).
NNPC’s commitment to improving Nigeria’s energy sector is evident in its ongoing efforts to expand gas processing and develop transportation services to meet both domestic and international demand. This project is a testament to NNPC’s dedication to fostering a sustainable and diversified energy future for Nigeria.
