Ghana 'Owes Nigeria Gas $120m'

According to TV3, Ghana's Volta River Authority (VRA) owes Nigeria Gas approximately $120 million, as a result of the power-producing company’s inability to pay off six months of gas supplied.

However this isn't the reason for the erratic supply of gas from Nigeria.

Former Deputy Governor of the Central Bank and Economist Dr Mahamudu Bawumia had stated yesterday that VRA owes Nigeria Gas $100 million, a reason for “the untold story” of the erratic supply of gas.

“Nigeria Gas is, therefore, dragging its feet with regards to the supply of gas while this amount is unpaid,” Dr Bawumia stated during his lecture as Visiting Professor of Economic Governance at the Central University College on Tuesday, March 24.

“Ultimately, the dumsor problem is more of a financial problem than a technical one,” he suggested.

Nigeria is reportedly considering cutting supply of gas to VRA after honouring a breach-of-agreement compensation by paying $10 million to Ghana for erratic supply.