Ghana and Nigeria Move to Resolve $75 Million Gas Debt Dispute
The Federal Government has called on President John Dramani Mahama of the Republic of Ghana to ensure that relevant agencies in his country are prompt in clearing the backlog of debts for gas supplied.
Ekperipe Ekpo, Nigeria’s Minister of State for Petroleum Resources (Gas), conveyed the message to President Mahama during a courtesy visit on the sidelines of the Meeting of the Committee of Ministers of the West African Gas Pipeline (WAGP), held in Accra on April 29, 2025.
Ekpo assured the Ghanaian leader of Nigeria’s readiness to address and resolve outstanding issues related to gas supply to Ghana under the West African Gas Pipeline (WAGP) framework, as earlier reports placed the debts at $75 million.
BusinessDay contacted Aliyu Aminu, Managing Director of N-Gas, a subsidiary of the Nigerian National Petroleum Company (NNPC) Limited, to know recent developments regarding Ghana’s gas supply debts, but he declined to comment.
Ekpo appealed to President Mahama to direct relevant authorities to expedite action on the proposed fiscal amendments to the WAGP Act to align with evolving operational realities and maintain regional harmony as enshrined in the Treaty.
“We are committed to sustaining continued collaboration with Ghana in the gas sector,” Ekpo said.
The Nigerian Gas Minister also solicited Ghana’s continued support for the African Atlantic Gas Pipeline Project, a strategic initiative aimed at deepening regional energy security and economic cooperation.
In his response, President Mahama thanked Ekpo for his visit and assured that Ghana would always fulfil its financial obligations to the West African Gas Pipeline project.
Mahama also pledged his country’s support to maintain regional harmony as enshrined in the proposed fiscal amendments to the WAGP Act.
Earlier reports from Ghana
The Ghanaian government announced in February that it was gearing up for negotiations with Nigeria’s N-Gas Limited in the coming week. The talks aimed to settle a payment of $37.5 million, representing a portion of the outstanding debt owed for gas supplied to Ghana’s power plants.
However, the MD of N-Gas has neither confirmed nor refuted that the payment of $37.5 million was made.
John Abdulai Jinapor, Ghana’s Minister for Energy and Green Transition, stressed the significance of the payment initiative during a visit to the West Africa Gas Pipeline Company Limited (WAPCo) facility in Tema.
WAPCo, which operates the 569-kilometre gas pipeline stretching from Nigeria to Ghana’s Takoradi through Tema, halted gas transportation on February 5, 2025. The suspension allows for essential maintenance operations, including pipeline cleaning and inspection.
Jinapor disclosed that N-Gas recently sent a formal notice warning of a potential suspension of gas supplies due to a total accumulated debt of $75 million.
“The government is focusing on resolving the problem. We will do everything possible to ensure that after the pipeline is cleaned, the flow of gas will resume to keep the lights on, because the health and growth of the economy depend on access to stable energy,” he said.
