The West African Gas Pipeline Company (WAPCo) has suspended the supply of gas from Nigeria to Ghana.
Corporate Affairs Director for WAPCo, Harriet Wereko-Brobbey told the BBC the action which was taken on Friday, was as a result of unpaid bills by the Ghana government.
The Volta River Authority owes Nigeria's N-Gas about $180 million, while N-Gas in turn owes the Pipeline Company $104 million, WAPCo spokeswoman Harriet Wereko-Brobby told Reuters.
She said it was the first time the company, a public-private partnership in which a Chevron subsidiary has a 36.9 percent stake, has been suspended supplies to Ghana.
A threat by the gas supplier in October last year was suspended after negotiations between the a Ghana government delegation and N-Gas.
The Managing Director of WAPCo, Walter Perez stated publicly that the debt owed N-Gas by Ghana was affecting WAPCo's production.
A high-level government delegation led by the then Power Minister, Kwabena Donkor stormed Nigeria for talks with WAPCo.
Ghana has a deal with N-Gas to receive a 120 million standard cubic feet (mmscf) of gas daily, and the government has in the past held several discussions with the gas supplier over the payment of the long-standing debt.
WAPCo owns and operates the West African Gas Pipeline that supplies gas to power producers in Nigeria, Ghana, Benin, Togo and Ivory Coast.
The cut in gas supplies to Ghana will result in a huge power shortfall that will worsen the power situation in the country.