(Ecofin Agency) - The West African Gas Pipeline Company (Wapco) has announced that it postponed the flow of gas from Nigeria to Ghana due to arrears owed by the Ghanaian government.

According to Wapco spokeswoman, Harriet Wereko-Brobby, Volta River Authority (VRA), Ghana's state power producer, owes N-Gas about $180 million while N-Gas on the other hand owes the Pipeline Company $104 million.She added that this will be the first time the pipeline company has been shut down due to non-payment.

Ghana is currently faced with energy supply issues. For years constant lack of electricity have infuriated the masses and this year power prices have increased sharply.The government is making efforts to reduce inflation and cut down budget shortfalls.

Ghana only gets a small percentage of its energy needs through the pipeline, but the postponement is expected to intensify the power supply problems. As a matter of fact, this could make the government depend heavily on imported gas, Reuters reports.

Anita Fatunji