Ghana to settle N33.8bn gas debt owed Nigeria in 2016
The Nigerian government has reached an agreement with Ghana on modalities to settle the outstanding N33.8 billion owed N-Gaz by the Volta River Authority (VRA) by February 2016.
VRA had been supplied gas for power generation by N-Gaz, which is a joint venture company owned by NNPC, Shell and Chevron that delivers gas through the West African Gas Pipeline Company (WAGPCo) to Ghana.
The highlight of the agreement is that the total sum of gas supply debt will be cleared not beyond a February 2016 dateline jointly agreed by the two countries.
The agreement, which was reached on Monday between a team led by the group managing director of the Nigerian National Petroleum Corporation (NNPC), Ibe Kachikwu, and the President of Ghana, John Dramani Mahama, stipulates that VRA will pay the balance of August and September invoices by October 31 at the latest.
It was also agreed that all other supplies as from October would be paid for on or before due date, while the backlog of arrears from 2012, would be defrayed by February 2016.
It would be recalled that Nigeria had threatened to cut gas supply to Ghana by 70 percent over a $181 million debt that had accumulated over the years.
Last week, the Ghanaian minister of power, Kwabena Donkor, led a high powered delegation to Abuja for talks with Nigerian authorities, aimed at resolving the gas debt issue.
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