The Bank of Ghana (BoG) has placed a hold on the Gold-for-Oil (G4O) programme, citing policy and operational challenges that have resulted in financial losses.
BoG Governor, Dr. Johnson Asiama, confirmed the suspension in an interview with Bloomberg, explaining that the decision was necessary to address key issues affecting the programme’s viability.
“We have had to incur some losses on that, so we have put some suspension on the trade,” Dr. Asiama stated. While he did not disclose specific details, the suspension signals a shift in economic priorities under the new administration.
Despite halting the G4O programme, Dr. Asiama reassured Ghanaians that the BoG remains committed to maintaining monetary stability and supporting fiscal discipline under President John Mahama’s leadership.
“We intend to maintain an appropriate monetary policy stance. Together with commitments to fiscal discipline, this should help us sustain stability in the foreign exchange markets,” he added.
The Gold-for-Oil programme, introduced by the previous Akufo-Addo-led government, was designed to stabilize fuel prices and reduce dependence on foreign oil markets. However, it has been clouded by controversy, with critics accusing it of mismanagement and a lack of transparency.
Concerns have been raised over contract allocations and whether the programme delivered on its promises. Ahead of the 2024 election, President Mahama vowed to investigate the initiative, questioning its efficiency and accountability.
With the programme now on hold, the focus shifts to the government’s next steps in ensuring energy security and addressing concerns over transparency in resource management.
