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Government settles GH¢553.5m debt owed Nigerian Gas Company

William Owuraku Aidoo12Deputy Energy Minister, William Owuraku Aidoo

Sat, 18 Jun 2022 Source: www.ghanaweb.com

Deputy Energy Minister speaks on the floor of parliament

Supply of natural gas by N-Gas 'saved' Ghana from dumsor, Owuraku Aidoo

VRA has improved remarkably on their balance sheet, Deputy Energy Minister

Deputy Minister of Energy, William Owuraku Aidoo, has noted that government has settled its legacy debt owed Nigerian Gas Company Limited (N-Gas).

According to him, government, through his outfit, paid off the GH¢553,452,668 in three tranches.

William Owuraku Aidoo indicated that this settlement comes after the Volta River Authority (VRA) improved its balance sheets.

The Nigerian Gas Company Limited has over the years supplied Ghana with natural gas to help sustain the energy sector.

This, the Deputy Energy Minister said has helped ameliorate the power crisis in the country.

While speaking on the floor of parliament on Friday, June 17, 2022, William Owuraku Aidoo said, “I would like to point out that, subsequently, VRA has been able to pay its obligations to N-Gas as and when it falls due...VRA is able to pay for its obligation to N-Gas for the supply of natural gas from Nigeria. I will say that it has gone a long way in ameliorating the power situation in Ghana thereby preventing dumsor.”

“VRA under the able leadership of Antwi Darkwa has improved remarkably on their balance sheet and as a result they are able to pay for gas supply to Ghana as and when it falls due. VRA is doing a very good job in polishing its balance sheet thereby being able to pay for its bills,” he added.

Background

The accumulation of debt owed N-Gas started in 2014 due to the inability of VRA to pay the company.

According to Graphic.com.gh report, government in 2017 instituted strategic intervention programmes such as ESLA to pay in tranches this legacy debt.

Ghana at the Committee of Ministers meeting in Lome, Togo, in December 2020 made a commitment to settle the debt by end of this year.

Source: www.ghanaweb.com
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