Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) Dr. Emmanuel Ibe Kachikwu and the President of Ghana, John Mahama on Monday held a meeting in Kumasi, Ghana, in order to reach a deal on the outstanding debts owed Nigeria by the Volta River Authority (VRA) for gas supplied.
This came after Nigeria threatened to cut supplies to Ghana over the unpaid debts.
The agreement allows the VRA till the end of February 2016, to settle a backlog of debts believed to be around $171m.
The company must, however, pay in full the invoices for the months of August and September latest by October 31 or risk being cut off from supplies.
The debt covers gas supplied to VRA, which is a company owned 100% by the government of Ghana, and the cost of supply and transportation of the gas from Nigeria.
Meanwhile, the Ministry of Finance has been directed to write a letter requesting the West African Gas Pipeline Company (WAPCO) to extend the November 5 date for the Ghanaian government’s guaranty.
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