Nigeria pays Ghana $10 million as compensation for not meeting conditions of their gas supply agreement

The Federal Government of Nigeria has paid $10 million compensation to Ghana for failing to meet the conditions of the gas supply agreement the two countries had signed back in 1999.
According to the agreement, Nigeria was required to supply Ghana with a total of 123 million Metric British Thermal Units (MMBtu) of gas per day. However, we have been able to supply about 30
MMBtu per day, sometimes even less Ghana’s Director of Planning and Business Development of the Volta River Authority (VRA), Kofi Ellis, explained that Ghana had been paid $10 million as damages over the shortfall.
Ellis admitted gas is a commodity needed in both countries, and, as much as Nigerians would like to help Ghana, they face their own problems.
The contract, however, would not be abrogated notwithstanding that Nigeria is facing challenges in meeting the terms.
A recent visit of the Ghanian Minister of Energy and Petroleum, Emmanuel Armah-Kofi Buah, to Nigeria culminated in West Africa’s biggest gas-supply nation promising to supply a constant 50 MMBtu/day.

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