In a significant move aimed at revitalizing the energy sector, the Ministry of Finance (MoF) has shared that the administration of John Dramani Mahama has successfully settled US$1.47 billion in debt during its inaugural year in office. This substantial payment is part of an effort to stabilize Ghana’s energy landscape, clear long-standing debts, and re-establish the country’s reputation among international stakeholders.
On January 12, 2026, the MoF issued a statement highlighting these proactive measures, which they claim have effectively reversed one of the most severe threats to Ghana's financial stability.
Under President John Dramani Mahama's leadership, the Ghanaian government has tackled the debilitating debt within the energy sector that had endangered the nation's economic health. The ministry pointed out that when President Mahama took office in January 2025, the energy sector was teetering on the brink of failure, primarily due to unpaid bills for gas sourced from the Offshore Cape Three Points (OCTP) project.
Additionally, the ministry disclosed that the previous government had completely depleted the World Bank’s Partial Risk Guarantee (PRG) of US$500 million, initiated in 2015 under an earlier NDC administration. This guarantee was crucial as it facilitated nearly US$8 billion in private investments into the Ghanaian energy sector, particularly through the Sankofa Gas Project. The depletion of this fund represented a significant governance lapse that weakened Ghana’s standing internationally.
To rectify this situation, the current government has fully restored the PRG. "As of December 31, 2025, we have repaid a total of US$597.15 million, including interest accrued from the World Bank Guarantee," the statement indicated. This action has reinstated the facility in its entirety, reaffirming Ghana’s place as a trustworthy global partner.
The ministry also noted that between January and December 2025, the government made all overdue payments for gas owed to ENI and Vitol, amounting to around US$480 million. "These transactions confirmed that Ghana is now up to date with its financial commitments to the Sankofa partners, ensuring sufficient budgetary allocations are in place for future payments," the statement elaborated.
Furthermore, the government has established new payment frameworks with other upstream partners. "We have engaged in productive discussions with Tullow Oil and the Jubilee Field partners, resulting in a comprehensive plan that guarantees full payment for all gas supplied," the Ministry stated.
This strategic approach aims to bolster reliable electricity generation across the nation while promoting industrial development. The ministry emphasized that these negotiations have already led to a noticeable increase in gas production.
The engagements with upstream partners have not only spurred enhanced gas output but have also been guided by a clear national vision to expand domestic gas supply and lessen dependence on costly liquid fuels.
In addition to these measures, the government has effectively renegotiated contracts with Independent Power Producers (IPPs) to ensure better value for the citizens of Ghana. In 2025 alone, the government reported making payments totaling approximately US$393 million towards overdue IPP debts, benefiting a range of companies including Karpowership, Cenpower, Twin City Energy, Early Power, BXC, Meinergy, Sunon Asogli, AKSA Energy, and Cenit Energy.
In summary, the Ministry of Finance remarked, "Overall, we have disbursed around US$1.47 billion throughout the 2025 fiscal year to rescue and rejuvenate Ghana’s energy sector."
But here's where it gets controversial: Is the government's approach sustainable in the long run? Will these measures truly restore confidence in the energy sector, or are they merely a temporary fix to a much larger problem? What do you think—are these steps enough to secure Ghana's energy future, or is there more that needs to be done? Share your thoughts in the comments!
