Gas Debt: Ghana To Pay Nigeria N33.8bn

Ghana will pay Nigeria N33.8bn for the gas the country’s Volta River Authority (VRA) received from a Nigerian company, N-Gaz meant for power generation.

The Nigerian and Ghananian government reached an agreement with the modalities to settle the outstanding debt on Monday 19, Daily Trust reports.

L-R: Ghanaian President, John Mahama and NNPC DG, Dr Ibe Kachikwu at the meeting.

The group general manager of the Nigerian National Petroleum Corporation (NNPC), Dr Ibe Kachikwu lead a team from the corporation to meet with the President of Ghana, John Dramani Mahama to finalise on the deal.

The deal states that VRA will pay the balance of August and September invoices by latest October 31, which also includes the total sum of the gas supply debt which is expected to be cleared by latest February 2016.

Ohi Alegbe, NNPC spokesman, in a statement said, both countries agreed that all other supplies as from October will be paid for on or before due date.

Recall that Nigeria had threatened to cut gas supply to Ghana by 70 per cent last week over a $181 million debt that had accumulated over the years.

Ghanaian Minister of Power, Dr Kwabena Donkor, was in Abuja last week to hold talks with Nigerian government officials with the aim of resolving the issue amicably.

N-Gaz is a joint venture company owned by the NNPC, Shell and Chevron which delivers gas through the West African Gas Pipeline Company (WAGPCo) to Ghana.

Meanwhile, the NNPC has revealed that it is looking at significantly reducing the cost of refining crude oil within the country through resource co-location.

It will be recalled that the Nigeria Extractive Industries Transparency Initiative (NEITI) recently said the Nigerian government lost $966 million from 2009 to 2012 as costs of crude oil swapped.

The post Gas Debt: Ghana To Pay Nigeria N33.8bn appeared first on Nigeria News today & Breaking news | Read on NAIJ.COM.

Source: naij.com

Gas Debt: Ghana To Pay Nigeria N33.8bn