In a bid to resolve a lingering $75 million gas debt, Nigeria and Ghana recently met in Accra during the West African Gas Pipeline (WAGP) Committee of Ministers meeting. The West African Gas Pipeline is a cornerstone project aimed at promoting energy integration and stability across the region. Spanning approximately 678 kilometres, the pipeline transports natural gas from Nigeria’s prolific Niger Delta to Benin, Togo and Ghana. It is managed by the West African Gas Pipeline Company Limited (WAPCo), a consortium that includes Chevron, Nigeria’s NNPC, Shell, and national gas companies from Ghana, Togo and Benin. The pipeline plays a crucial role in supporting electricity generation and industrial activity throughout these countries.
Ongoing Debt Challenges and Negotiations
Ghana’s dependence on imported natural gas for its power sector has led to recurring financial arrears, with the current dispute centred on a $75 million debt owed to Nigeria for gas supplied several months ago. The outstanding sum has lingered due to documentation irregularities and Ghana’s fiscal constraints, hindering timely repayment.
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During the meetings in Accra, Nigeria’s Minister of State for Petroleum Resources, Ekpo Ekperipe, met with Ghanaian President John Mahama and key stakeholders to stress the urgency of resolving the impasse. Ekperipe highlighted that settling the debt is essential not only for maintaining uninterrupted gas supplies but also for reinforcing regional cooperation and adherence to WAGP treaties.
“Engaging the appropriate Ghanaian agencies is crucial to settle the outstanding $75 million,” Ekperipe stated. “This will safeguard energy security and regional harmony, which are fundamental to our mutual development goals.”
Ghana’s Position and Future Steps
Ghana has expressed its commitment to fulfilling its financial obligations under the WAGP framework. President Mahama acknowledged Nigeria’s concerns and reaffirmed Ghana’s intention to resolve the matter. He also underlined the broader significance of regional energy projects, voicing support for initiatives such as the Atlantic Gas Pipeline Project—a proposed transcontinental pipeline aimed at enhancing energy security and economic integration across West and Central Africa.
Notably, Ghana has announced plans to negotiate a partial repayment with Nigeria’s N-Gas Limited—specifically a $37.5 million payment. However, confirmation from N-Gas on the status of that payment remains pending.
Regional Collaboration and Future Prospects
The discussions reflect a shared commitment among West African nations to deepen energy cooperation in the face of financial hurdles. Nigeria’s petroleum minister also used the opportunity to seek Ghana’s backing for the Atlantic Gas Pipeline Project, which aspires to broaden regional integration and diversify energy sources.
Both countries reaffirmed their readiness to work collaboratively and pursue mutually beneficial resolutions to outstanding issues. Resolving the $75 million debt is seen as a crucial step towards ensuring the sustainability of gas supplies, bolstering regional stability, and advancing broader infrastructure projects that can drive economic development.
The Accra talks underscore the importance of diplomatic engagement and regional solidarity in tackling the financial and logistical challenges that threaten energy security. As Nigeria and Ghana move towards resolving the dispute, their continued collaboration signals promise for the future of energy cooperation in West Africa. A successful resolution could serve as a blueprint for addressing similar disputes and strengthening integration efforts across the region’s energy sector.
