Energy Minister John Jinapor urges patience as Ghana struggles with $75 million gas debt, denies ECG sale

The Minister for Energy and Green Transition, John Abdulai Jinapor, has urged Ghanaians to brace for possible disruptions in power supply as the government struggles to secure funds to settle a $75 million debt owed to N-Gas Limited.

Speaking during a visit to the West African Gas Pipeline Company (WAPCo) station in Tema on February 21, Jinapor assured the public that efforts were underway to minimize the impact of the gas supply shortfall.

“If there are minimal disruptions in power supply, it is not deliberate,” he stated. “Given the situation and the short time we have to procure fuel, we are trying our best to ensure minimal impact. I commend GRIDCo and all power producers for their work and urge the Electricity Company of Ghana (ECG) to remain on standby.”

N-Gas has officially notified the Volta River Authority (VRA) of its decision to suspend gas supply due to outstanding arrears, raising concerns over potential power shortages. Jinapor revealed that President John Dramani Mahama and Finance Minister Dr Cassiel Ato Forson were negotiating a payment schedule with the Nigerian supplier to avoid further disruptions.

“This debt is from last year up to now. Given the tight fiscal situation, we are appealing to our Nigerian counterparts to accept a down payment while we agree on a structured payment plan. I am confident that a solution will be reached,” he said.

No plans to sell ECG, but private sector involvement needed

Jinapor also dismissed reports that the government plans to sell ECG, insisting that while privatization is off the table, private sector participation is necessary to enhance efficiency and financial sustainability.

“The claims that ECG is being sold are false,” he emphasized. “However, we need private sector involvement to improve efficiency, reduce losses, and increase revenue to pay for critical expenses like gas supply.”

The minister highlighted the financial strain caused by inefficiencies in the energy sector, explaining that funds meant for infrastructure projects were being redirected to settle debts to WAPCo and N-Gas.

“Under normal circumstances, taxpayers’ money should be going into roads, hospitals, and other infrastructure projects, not paying off energy debts. But today, we have no choice but to squeeze funds from the budget to pay N-Gas,” he said.

Jinapor reiterated the government’s commitment to reforms that will ensure ECG’s viability while safeguarding public interest.