-Marginalises Host States, Communities
June 01 (THEWILL) — Nigeria has achieved a significant milestone in her gas development plan with the successful completion of the River Niger crossing – a technically challenging section of the Obiafu-Obrikom-Oben (OB3) pipeline project, that had previously delayed the job for years.
In April 2026, the NNPC Gas Infrastructure Company (a subsidiary of NNPC Limited) announced the completion of the River Niger crossing, a 1.8km to 2km section executed under the riverbed.
Specifically, the 130-kilometer (or approximately 127-km) 48-inch pipeline runs from the Obiafu-Obrikom gas plant near Omoku, Rivers State, to Oben, Edo State, where it passes under the River Niger. The estimated cost for constructing the OB3 gas pipeline is US$700 million.
The project had faced numerous delays since its initiation in 2016, with previous targets of 2019, 2021, and 2024 missed, largely due to the technical difficulties of crossing the River Niger.
The breakthrough was achieved using advanced horizontal directional drilling (HDD) technology, often referred to as micro-tunnelling or direct pipe installation, which was necessary to overcome challenging geology and previous failure.
Economic significance
The pipeline is considered one of the largest gas transmission systems in Nigeria and Africa, designed to unlock domestic gas supply, strengthen energy security, and increase government revenue through reduced gas flaring. It is designed to transport up to 2 billion standard cubic feet of gas per day (2bscf/d).
The project is a critical component of Nigeria’s gas infrastructure development, intended to bridge the gap between the country’s eastern gas production and the western and northern consumption markets. It is central to the federal government’s “Gas-to-Prosperity” agenda, designed to drive industrialisation and boost power generation.
The successful completion of the River Niger crossing in 2026 is expected to immediately unlock over 500 million standard cubic feet of additional gas supply per day for the domestic market. According to industrial stakeholders, this infrastructure could attract over $2 billion in investment into the Nigerian economy.
Impact on AKK Pipeline
This completion enables the full activation of the OB3 pipeline, connecting the eastern gas network to the western network and connecting to the northern corridor via the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline.
The AKK Gas Pipeline is a $2.8 billion, 614-kilometer natural gas transmission pipeline developed by NNPC. It stretches from Kogi State through the Federal Capital Territory and Kaduna before terminating in Kano, and is designed to transport up to 3.5 billion cubic feet of gas daily.
It serves as a vital gas-to-power project, supplying fuel to major central and northern power plants, which will significantly boost the stability and capacity of the national grid. By delivering a reliable, cheaper energy source, it aims to revive moribund and dormant factories in historically underserved northern industrial hubs (example is the Kakuri Industrial Area in Kaduna).
Furthermore, the facility is projected to generate over a million direct jobs and millions of indirect jobs across the transit states by stimulating new industries and energy-dependent businesses. The pipeline will provide raw materials needed to produce commercial fertilizers and petrochemicals, directly supporting Nigeria’s agricultural sector.
Significantly, the AKK pipeline facilitates the widespread use of Compressed Natural Gas (CNG) to power public transit systems, offering a cleaner, locally sourced, and cheaper alternative to petrol. As a core segment of the Trans-Nigeria Gas Pipeline and the broader Trans-Saharan Gas Pipeline, it positions Nigeria to monetise its reserves locally and export gas to North Africa and Europe.
Impact on Seplat’s ANOH gas project
The OB3 gas pipeline will remarkably impact Seplat’s ANOH (Assa North-Ohaji South) gas project, which is the intended primary evacuation route for the facility. The 300-million-standard-cubic-feet-per-day (MMscfd) ANOH gas plant was built to inject its processed gas into the domestic market via the OB3 pipeline.
Extended delays in finishing the OB3 project also stranded the planned domestic gas volumes. To start monetising the asset, Seplat bypassed the uncompleted OB3 line and began routing ANOH gas through alternative infrastructure, such as the 11km Indorama gas export pipeline, while also pursuing export-driven Nigeria LNG (NLNG) offtakes.
Marginalising of host territories
According to the data at hand, the extensive plan for gas production, distribution, and consumption did not include any provisions for the host regions – specifically, the communities and states from which the commodity is sourced, primarily Imo, Rivers, and Edo states. This indicates that the prospective advantages of the project, such as swift industrialisation and the establishment of power-generating facilities, will bypass the host regions that fundamentally endure the negative impacts of environmental degradation caused by gas extraction.
Of particular concern is the exclusion of the host communities from the AKK Skill Acquisition Programme – a targeted youth empowerment and capacity-building initiative spearheaded by the NNPC in partnership with project contractors like Oilserv Limited and other stakeholders.
Designed as a localised Corporate Social Responsibility (CSR) and National Content project, the programme aims to equip young Nigerians with high-value vocational and technical skills directly related to the oil, gas, and power sectors. The training is heavily practical and it absorbs only the communities where the pipeline passes under their ground, to the exclusion of oil and gas producing areas.
The initiative serves to bridge the technical gap in Nigeria’s local content requirements by empowering local communities. Preference is given to youths, students in tertiary institutions, and residents located in pipeline host communities (e.g., Kogi, Niger, Kaduna, Kano states) as the scheme is treated as a corporate social responsibility of the NNPC.
Dearth of foreign investment inflow
The exclusion of oil and gas bearing communities accounts for the dearth of foreign investment inflow recorded against the regions, based on the Nigeria Bureau of Statistics (NBS) reports.
Of particular concern is Imo. Despite housing the largest natural gas reserves and significant crude oil deposits in Nigeria, the state attracted zero foreign investment in five years, between 2020 and 2025, according to data by the NBS.
The statistics agency in its quarterly Capital Importation reports showed that, after recording the sum of $3 million in 2019, Imo had no dime to its name by way of investment inflow to the state till date.
Imo’s unimpressive situation is more worrying on the ground that the state is known for its largest natural gas reserves in the country and in West Africa, which is the source of huge revenue to the Nigerian government.
Nigeria has nearly 300 trillion cubic feet of natural gas reserves, ranking 9th in the world, with Imo holding the largest reserve of 200 trillion cubic feet of gas deposits.
Industry experts confirm that Imo’s huge oil and gas deposits constitute an unprecedented economic asset that no other South-east state can boast of. For Imo to be lacking in foreign investment in oil, gas and other natural resources is considered a huge disappointment.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
