“So when the pipe was fixed and the gas started flowing, it had already frustrated the accounts of the VRA but now, there is a plan in place to pay the debt and already, July and August have been sorted out”, the President told Kumasi-based Garden City Radio.

Representatives of both countries had met last week to discuss the issue.

The sources, however, declined to give the breakdown of the payment dates and how much is to be paid for each tranche.

Ghana’s state power generating company, the Volta River Authority, will settle the debt to Nigeria’s N-Gas in three tranches starting in November, said Kweku Sersah.

He is a spokesman for Ghana’s Ministry of Power.

A Ghanaian Government delegation is at present in Nigeria to hold emergency talks with the federal government, to avert a drastic gas supply cut threat.

As a result, Mahama has promised to stop the electricity cuts by early 2016; Kwabena Donkor - Minister for Power - has also stated that should the problem not be dealt with and resolved, he will resign.

This means the Government of Ghana, which is the 100 per cent owner of the VRA, will have to look for money to bail out the firm in order to ensure that the N-Gas does not cut gas supply to the country.

The N-Gas buys gas from oil companies in Nigeria and transport the commodity to its customers in Benin, Togo and Ghana through the $1bn WAGP, which is operated by the West African Gas Pipeline Company.

The VRA owes WAPco 103 million dollars with the balance of 78 million dollars being owed to N-Gas and the other parties in the gas supply chain.

N-Gas is a company jointly-owned by Nigerian National Petroleum Corporation, Shell Petroleum Development Company and Chevron Nigeria Limited.

A ship berths near the Nigeria Liquified Natural Gas company (NLNG) in Bonny, Nigeria.

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