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Home International Customs

Nigeria pays Ghana $10m as penalty for inferior gas pipeline

byCustoms Today Report
28/01/2015
in International Customs, Nigeria
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ABUJA: Ghana’s President, John Mahama, has said that Nigeria paid Ghana the amount of $10 million as penalties for default­ing to deliver the quantity of gas spelt out under the West African Gas Pipeline project.

According to GhanaWeb re­ports, the president also said that the power plants that rely on gas from the West Africa Gas Pipeline have been shut down as a result of Nigeria’s failure to provide enough of gas in accor­dance with the contract.

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Nigeria was expected to pro­vide at least 120 million cubic feet of gas daily in accordance with the contract but it has con­sistently defaulted.

The failure of Nigeria to meet its contractual obligations to Ghana has led to a protracted power crisis in the country.

GhanaWeb recalled that offi­cials of the Ghana Grid Compa­ny recently indicated they have been forced to shed between 400 and 600 megawatts of power due to the inconsistent and reduced supply of power from the lo­cal power generators who also blame their inability to gener­ate more power on the insuffi­cient supply of gas from Nigeria through the West African Gas pipeline.

Tags: Ghana $10minferior gas pipelineNigeria payspenalty

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