Nigeria seeks $1 bln for key gas pipeline as it awaits Chinese lending

Nigeria needs over US$1bn in funding to proceed with its US$2.8 billion gas pipeline project, following failure by former Chinese backers to make the promised funding available as early as necessary. 

This follows a host of other recent events which signify the dwindling interest of Chinese lenders in funding infrastructure projects in Africa. This change is rather unexpected, given the years of commitment and support China has given to various infrastructure projects in the region, including railway and energy among others. 

A representative of state-run oil firm NNPC, the firm responsible for the 614-km (384-mile) Ajaokuta-Kaduna-Kano (AKK) pipeline, has indicated that the deliberation process was still ongoing with China’s Bank of China and Sinosure to acquire about US$1.8 billion.

NNPC itself is providing 15% of the total value of the project and has used its funds to break ground on the projects. Sources speculate that the firm now has no other choice but to look to other sources of funding to avoid falling too far behind schedule on the project.