Togolese Gov’t Overhauls Tax Framework For Nigeria–Ghana Gas Pipeline

The Government of Togo has revised the tax regime governing the West African Gas Pipeline, a key source of gas supply for the country.

According to local reports, the changes, enacted on December 24, extend the tax exemption for the pipeline operator, West African Gas Pipeline Company (WAPCo), by five years, bringing the total exemption period to 10 years.

Under the new framework, WAPCo’s corporate tax rate has been reduced to 30 percent from 35 percent, aligning it with rates in other countries participating in the regional project.

The law allows Togo to increase the rate if necessary, but caps it at 35 percent.

The National Assembly approved the amendments to the pipeline’s legal and fiscal framework during a plenary session.

Deputy Energy Minister Messan Eklo presented the bill to lawmakers.

Eklo said the changes were designed to ease WAPCo’s financial constraints, which have limited its investment capacity, and to reflect shifts in operating conditions.

These include the opening of a second gas entry point at Takoradi in Ghana and an increase in the number of operators in the sector.

The amendments also grant the West African Gas Pipeline Authority (WAGPA) regulatory oversight of gas shippers, in line with the network code.

The 678-kilometre pipeline—most of it offshore in the Gulf of Guinea—transports natural gas from Nigeria to Benin, Togo and Ghana. Operations began following a treaty signed by the four countries in January 2003. The previous legal framework dated back to December 2004.