Government pays US$1.47bn to stabilise energy sector, restore investor confidence
12th January 2026
The Ministry of Finance (MoF) says the government has paid a total of US$1.47 billion within its first year in office to stabilise Ghana’s energy sector, clear accumulated legacy debts, and rebuild confidence among international partners.
In a statement issued on Monday, January 12, 2026, the Ministry described the intervention by the John Dramani Mahama administration as decisive, noting that it has reversed what had become one of the most serious threats to the country’s financial stability.
“The Government of Ghana, under the leadership of President John Dramani Mahama, has decisively resolved the crippling energy sector debt that posed one of the gravest risks to Ghana’s financial stability,” the Ministry stated.
According to the MoF, when President Mahama assumed office in January 2025, the energy sector was on the brink of collapse following years of non-payment for gas supplied from the Offshore Cape Three Points (OCTP) field.
The Ministry further revealed that the World Bank Partial Risk Guarantee (PRG)—a US$500 million facility established in 2015 under a previous NDC administration—had been completely exhausted by the prior government.
Describing the situation as a major governance lapse, the Ministry said the depletion of the PRG undermined Ghana’s international credibility, despite the facility having enabled nearly US$8 billion in private sector investment through the Sankofa Gas Project.
To restore confidence, the government said it has fully replenished the guarantee. As at December 31, 2025, Ghana had repaid US$597.15 million, inclusive of interest, drawn under the World Bank PRG.
“This action has restored the facility in full and reaffirmed Ghana’s standing as a credible and reliable partner on the global stage,” the Ministry noted.
The statement also disclosed that between January and December 2025, government settled all outstanding gas payment arrears owed to ENI and Vitol, amounting to approximately US$480 million.
“These payments have ensured that Ghana is fully current on its obligations to the Sankofa partners, with adequate budgetary provisions in place to sustain timely payments going forward,” it said.
Beyond the OCTP partners, the government said it has reached fresh payment arrangements with other upstream producers, including Tullow Oil and Jubilee Field partners, to guarantee full settlement for gas supplied.
According to the Ministry, these engagements are already yielding results, with increased gas production supporting reliable nationwide electricity generation and reducing reliance on expensive liquid fuels.
As part of broader structural reforms, the government also announced the successful renegotiation of several Independent Power Producer (IPP) contracts to deliver improved value for money.
In 2025 alone, the state paid about US$393 million in legacy IPP debts to companies including Karpowership, Cenpower, Twin City Energy, Early Power, BXC, Meinergy, Sunon Asogli, AKSA Energy, and Cenit Energy.
“Altogether, the Ministry of Finance has paid approximately US$1.470 billion in the 2025 fiscal year to rescue and restore Ghana’s energy sector,” the statement concluded.