Ghana is exploring a new energy cooperation arrangement with Nigeria that could see Nigerian natural gas supplied to Ghana for electricity generation, with power subsequently exported back to Nigeria.

Deputy Minister for Energy and Green Transition Richard Gyan Mensah disclosed that discussions are underway as Ghana seeks to deepen regional electricity trade and strengthen its position as a power hub in West Africa.

Speaking at the Ghana Industrial Summit and Exhibition in Accra, Gyan Mensah said Nigeria could be incorporated into Ghana's planned regional electricity transmission arrangements.

Under one proposal being considered, Nigeria would supply natural gas to Ghana, where it would be used for electricity generation before power is supplied back to Nigeria.

The arrangement remains under discussion and no final agreement has been announced.

GHANA SEEKS DEEPER ENERGY COOPERATION WITH NIGERIA

Gyan Mensah said Ghana is working to expand electricity trade across West Africa while ensuring sufficient power remains available for domestic consumers.

Ghana already participates in regional electricity trade involving Togo, Benin and Burkina Faso.

The government now wants to expand that regional footprint as transmission infrastructure develops.

Nigeria's inclusion could create a closer relationship between the two countries' energy sectors by combining Nigeria's substantial natural gas resources with Ghana's electricity generation infrastructure.

NIGERIAN GAS COULD GENERATE POWER IN GHANA

Natural gas already plays an important role in Ghana's electricity generation system.

The proposed arrangement would involve additional Nigerian gas being delivered to Ghana for power production.

Electricity generated in Ghana could then be transmitted to Nigeria through regional power infrastructure.

Ghana and Nigeria already participate in cross border energy cooperation through the West African Gas Pipeline, which connects Nigeria with Benin, Togo and Ghana.

The proposed electricity arrangement could deepen that relationship by expanding the movement of energy in both directions.

GHANA WANTS TO BECOME REGIONAL POWER HUB

Ghana's government has increasingly promoted regional electricity trade as part of its long term energy strategy.

Gyan Mensah said Ghana currently has sufficient generation capacity to meet domestic requirements while participating in regional electricity trade.

However, he acknowledged that additional generation capacity will be necessary as domestic electricity demand increases.

The government says regional exports will not be allowed to undermine electricity supply to Ghanaian households and businesses.

GOVERNMENT PLANS MAJOR POWER INVESTMENT

Ghana is planning substantial investment in electricity generation and transmission as it prepares for increased domestic demand and greater regional power trade.

The government has outlined approximately $10 billion in investment requirements under its Generation and Transmission Master Plan covering 2025 to 2040.

The programme is intended to expand electricity generation and strengthen transmission infrastructure.

Those investments could also increase Ghana's ability to trade electricity with neighbouring countries.

REGIONAL ENERGY INTEGRATION

The proposed Ghana Nigeria arrangement reflects wider efforts to create a more integrated West African energy market.

Regional infrastructure such as the West African Gas Pipeline and West African Power Pool is intended to allow countries to share energy resources and improve electricity reliability.

Ghana has previously argued that stronger regional cooperation could help West African countries make better use of available gas and electricity generation infrastructure.

For Nigeria, additional electricity imports could provide another source of power within the country's broader electricity supply system.

For Ghana, the arrangement could create an additional regional market for electricity generated using imported Nigerian gas.

However, the commercial terms, transmission arrangements, gas volumes and potential amount of electricity involved have not been announced.

DEAL REMAINS AT DISCUSSION STAGE

The proposal remains at an early stage.

Neither Ghana nor Nigeria has announced a final agreement establishing the gas for electricity arrangement.

Details including pricing, infrastructure requirements, electricity volumes and implementation timelines would need to be determined before such a system could become operational.

Ghana's existing energy relationship with Nigeria nevertheless provides infrastructure and institutional experience that could support deeper cooperation.

The West African Gas Pipeline already delivers Nigerian natural gas through Benin and Togo to Ghana and remains an important component of regional energy integration.

If negotiations progress, the proposed arrangement could further connect the electricity and natural gas markets of two of West Africa's largest economies while advancing Ghana's ambition to become an important regional electricity hub.