Ghana and Nigeria are finalizing a landmark barter-style energy agreement that will see the two West African nations exchange natural gas for electricity.
Under the proposed deal, Nigeria will supply natural gas to Ghana, which will in turn use the resource to power its thermal plants and generate electricity. Rather than making direct cash payments, Ghana will send a portion of the electricity produced back to Nigeria as compensation.
The agreement is designed to strengthen regional energy security and optimize resources, leveraging Nigeria’s vast natural gas reserves and Ghana’s growing capacity for power generation.
Ghana already exports electricity to several neighboring countries, including Togo, Burkina Faso, Côte d’Ivoire, and Benin. The new arrangement with Nigeria is expected to further position Accra as an energy hub in West Africa.
Recent developments also highlight Ghana’s ambition to modernize its power sector. In July 2025, the country launched its first government-owned, solar-powered electric vehicle (EV) charging station in Accra, built with support from the German development agency GIZ. The facility, equipped with solar panels and a lithium-ion battery bank, serves as a model for sustainable transport infrastructure.
Ghana’s energy mix is supported by major installations such as the Bui Hydroelectric Power Station and several thermal plants, including the Aksa Ghana HFO power plant and the Kpone Thermal Power Station II, which collectively meet much of the nation’s electricity demand.
Analysts say the gas-for-power arrangement could provide mutual benefits: Nigeria would reduce gas flaring and monetize its resources more effectively, while Ghana would boost energy output and enhance its role as a regional electricity supplier.
Would you like me to also prepare a regional impact analysis on how this deal might affect the West African Power Pool (WAPP) and cross-border electricity trading?
