WAPCo Warns $50 Million Debt Threatens West African Gas Market Despite $3 Billion Power Savings

WAPCo MD Abiodun Bodunrin warns $50m in unpaid invoices threatens regional gas markets, even as the pipeline saves Ghana $3bn in power costs.

By: AXL Media

Published: Apr 17, 2026, 10:33 AM EDT

Source: Information for this report was sourced from LEADERSHIP News

Fiscal Warnings Amid Regional Energy Success

The West African Gas Pipeline Company Limited has issued a stern warning to member states regarding more than $50 million in unpaid invoices, stating that the mounting debt poses a direct threat to the long term health of the regional gas market. Addressing the WAGP Committee of Ministers in Abuja on Friday, Managing Director Abiodun Bodunrin noted that as of March 30, 2026, these unsecured overdue payments are eroding investor confidence and contract reliability. He urged for immediate action on payment discipline to ensure the pipeline remains a viable pillar of West African infrastructure.

Quantifying the Economic Impact of Gas Supplies

Despite the current financial friction, the economic benefits of the WAGP infrastructure have been substantial. Bodunrin highlighted that gas supplies delivered to Ghana alone resulted in approximately $3 billion in power generation savings between 2011 and 2025 when compared to the cost of liquid fuels. In 2025, gas deliveries saw a 23 percent year on year increase, reflecting growing regional reliance on the pipeline. Over its 14 years of operation, the network has become a critical fuel source for industrial growth and trade across Nigeria, Ghana, Togo, and Benin.

Ambitious Capacity Expansion for 2026

Looking toward the immediate future, WAPCo is targeting a significant 45 percent increase in pipeline utilization for 2026. This expansion aims to add 100 million standard cubic feet per day (MMSCFD) through a combination of transmission enhancements in Nigeria and new supply negotiations. The company is eyeing emerging markets in Lomé, Cotonou, and Tema for immediate upside, while also considering long term integration with the Africa Atlantic Gas Pipeline initiative. This growth strategy is supported by WAPCo's strong operational record, which includes 99 percent reliability in 2025 and 12 years without a worker injury.