Ghana’s energy sector is showing early signs of financial recovery following the government’s decision to clear long-standing legacy debts amounting to about US$1.47 billion within the first year of the Mahama Administration, the Ministry of Finance has announced.
According to the Ministry, the payments—completed by December 31, 2025—mark a major step toward restoring confidence among energy sector partners after years of accumulated arrears that strained power generation and fuel supply arrangements. Officials say the intervention is part of a broader strategy to stabilise the sector and prevent a recurrence of past financial distress.
Central to the reset was the full reinstatement of the World Bank Partial Risk Guarantee (PRG), which had been depleted following persistent defaults under the previous administration. The Ministry disclosed that US$597.15 million, including interest, was paid to reimburse the facility in full, restoring Ghana’s credibility with international lenders and development partners.
The government also moved to normalise relations with key gas suppliers by settling outstanding obligations to ENI and Vitol under the Sankofa Gas Project. Nearly US$480 million was paid to clear arrears, bringing Ghana back into full compliance and securing uninterrupted gas supply for power generation. In addition, about US$393 million was paid to Independent Power Producers (IPPs) to reduce accumulated debts within the 2025 fiscal year.
Beyond clearing arrears, the Finance Ministry said new payment frameworks have been agreed with Tullow Oil and its Jubilee Field partners to ensure predictable and timely gas purchases going forward. It added that improved budgetary planning and tighter financial controls have been introduced to safeguard the sector’s sustainability and prevent future debt build-up.
