The Ministry of Energy and Green Transition has proposed a barter arrangement with Nigeria, where Nigeria would supply natural gas to Ghana, which would then generate electricity to export back to Nigeria and neighboring countries. This unconventional deal is part of the West African Power Pool (WAPP), a regional initiative aimed at linking the electricity grids of 14 countries to enhance reliability and reduce costs. The arrangement could significantly impact Ghana’s economy by creating employment opportunities within the gas and electricity value chain, potentially generating 3,000–4,000 direct jobs and up to 20,000 indirect jobs through enhanced electricity supply.
While the barter system could alleviate pressure on Ghana’s foreign exchange reserves by reducing the need for U.S. dollars to pay for imported gas, it also poses risks, such as lost cash revenues from electricity exports. Investor confidence may improve due to established regulations under ECOWAS, which govern cross-border energy trade, positioning Ghana as a regional leader in energy cooperation. However, challenges remain, including the need for significant infrastructure upgrades and concerns over the fairness of gas-to-electricity conversion measurements.
While the barter system offers immediate benefits, it raises questions about long-term stability and may necessitate additional investments in domestic gas processing and renewable energy sources, which could provide more sustainable solutions. A balanced strategy that includes piloting the barter deal while investing in domestic resources may be essential for Ghana’s energy security and economic future.