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Agnes Oyedokun

April 16, 2025

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Northern Nigeria's Infrastructure Renaissance: Gas, Rails, and Renewables Fuel Economic Growth

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In a significant move to enhance economic development and regional connectivity, the Nigerian government has initiated several major infrastructure projects in Northern Nigeria. These initiatives aim to improve transportation networks, energy supply, and industrial capacity, thereby stimulating economic growth and fostering regional integration.

 

One of the cornerstone projects is the construction of the Ajaokuta-Kaduna-Kano (AKK) gas pipeline. This 614-kilometer pipeline is designed to transport natural gas from Ajaokuta in Kogi State to Kano, passing through Abuja and Kaduna. As of the first quarter of 2025, the project has achieved 72% completion, with expectations to be fully operational by mid-2025. The AKK pipeline is anticipated to supply 2.2 billion cubic feet of gas daily, powering industries and homes across Northern Nigeria, thus supporting industrial growth and energy access. 

 

Complementing the gas pipeline, the Nigerian government has secured funding for the construction of a standard-gauge railway linking Kano to Maradi in the Niger Republic. In March 2024, a $1.3 billion funding agreement was finalized, with the China Civil Engineering Construction Company leading the construction efforts. This rail link is expected to enhance trade and cultural ties between Nigeria and Niger, boosting economic cooperation and regional integration. 

 

To address the energy needs of Northern Nigeria, the government has partnered with WeLight, a pan-African Distributed Renewable Energy company, to install renewable mini-grids. A $200 million agreement signed in March 2025 aims to develop and operate 400 mini-grids and 50 MetroGrids, providing reliable electricity to millions in rural and peri-urban areas. This initiative seeks to increase the share of renewable energy in Nigeria's electricity mix from 22% to 50%, thereby improving energy access and supporting local economies. 

 

In a bid to transform rural economies and enhance food security, the government, in collaboration with the African Development Bank, is developing Special Agro-Industrial Processing Zones (SAPZs). Launched in April 2025, the first phase of this initiative focuses on establishing agro-processing facilities in selected states, aiming to reduce post-harvest losses, boost local production, and create employment opportunities. These zones are expected to attract private investment and revitalize the agricultural sector, making it more competitive and sustainable. 

 

Northern Nigeria has long faced environmental challenges such as desertification, land degradation, and water scarcity. To combat these issues, the World Bank-funded Agro-Climatic Resilience in Semi-Arid Landscapes (ACReSAL) project has been launched. This six-year initiative aims to restore one million hectares of degraded land by 2028, promoting sustainable land management practices, improving agricultural productivity, and reducing conflicts between herders and farmers. The project also focuses on strengthening institutional capacities for integrated climate-resilient landscape management. 

 

To further enhance regional connectivity, the Cross River State Government is advancing the Bakassi Deep Seaport project. In February 2025, an agreement was formalized with UAE-based ARISE Integrated Industrial Platform, granting the firm an 80% stake in the project. The seaport aims to facilitate the export of agricultural products and alleviate congestion at other Nigerian ports, thereby boosting trade and economic activities in the region. 

 

These infrastructure projects underscore the Nigerian government's commitment to fostering economic growth and development in Northern Nigeria. By improving transportation networks, energy supply, and industrial capacity, the initiatives aim to create a more integrated and prosperous region. As these projects progress, they hold the potential to transform the economic landscape of Northern Nigeria, contributing to the nation's overall development objectives.

 

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