Nigeria engages Ghana over $75m gas debt, promotes Atlantic pipeline partnership

Nigeria’s Minister of State for Petroleum Resources, Ekpo Ekperipe, stated that he discussed the outstanding $75m gas debt with Ghana’s President, John Dramani Mahama, during the meeting.

The minister emphasized the need to engage relevant agencies in Ghana to settle the debt owed to Nigeria for gas supplied under the West African Gas Pipeline (WAGP) agreement.

Ghana’s outstanding debt currently stands at $75 million for gas supplied several months ago, with uncleared documentation hindering payment. Ekpo stressed the urgency of resolving the issue to safeguard energy cooperation and regional harmony, as outlined in the Treaty.

Nigeria supplies gas to Ghana through the West African Gas Pipeline (WAGP), a 678-kilometer regional infrastructure project designed to transport natural gas from Nigeria’s Niger Delta to Benin, Togo, and Ghana.

The WAGP is operated by the West African Gas Pipeline Company Limited (WAPCo), a consortium that includes Chevron, the Nigerian National Petroleum Corporation (NNPC), Shell, and national gas companies from Ghana, Togo, and Benin.

Gas is primarily used by power plants in Ghana to generate electricity.

Over the years, Ghana has occasionally fallen into arrears due to financial challenges in its energy sector, prompting Nigeria to demand payment to avoid supply disruptions.

The recent $75 million arrears dispute is part of this ongoing supply and payment relationship.

The Nigerian Petroleum Minister also solicited Ghana’s support for the African Atlantic Gas Pipeline Project, a strategic project aimed at deepening regional ties in areas of energy security and economic cooperation.

“We are committed to sustaining continued collaboration with Ghana in the gas sector,” he stated, reaffirming Nigeria’s readiness to resolve all outstanding matters related to gas supply under the WAGP agreement.

President Mahama, in his response, expressed appreciation for the minister’s comments and shared concerns, reiterating Ghana’s commitment to fulfilling its financial obligations to the West African Gas Pipeline project and promoting regional stability and prosperity.

Notably, in February, the Ghanaian government announced plans to negotiate with Nigeria’s N-Gas Limited to settle a $37.5 million payment, part of the outstanding debt for gas supplied to Ghana’s power plants.

However, the Managing Director of N-Gas has not confirmed or denied whether the payment was made.