The Ministry of Finance has announced that the government has taken decisive steps to resolve Ghana’s long-standing energy sector debt, describing the move as a major milestone towards restoring financial stability and rebuilding international confidence.
In a statement issued on Monday, January 12, the Ministry disclosed that as of December 31, 2025, the John Dramani Mahama administration had paid a total of US$1.47 billion to stabilise and reset the energy sector.
According to the Ministry, when President Mahama assumed office in January 2025, the energy sector was on the brink of collapse following years of unpaid gas supply bills from the Offshore Cape Three Points (OCTP) Sankofa field. The arrears had led to the full exhaustion of the US$500 million World Bank Partial Risk Guarantee (PRG) established under the previous administration.
The PRG, created in 2015, served as a critical risk-mitigation instrument that enabled nearly US$8 billion in private sector investment through the Sankofa Gas Project by guaranteeing payments to partners ENI and Vitol in the event of government defaults.
The Ministry stated that government has since fully repaid US$597.15 million, including interest, drawn on the World Bank guarantee. This repayment has restored the PRG facility in full and strengthened Ghana’s credibility with international financial institutions and investors.
Between January and December 2025, government also cleared all outstanding gas invoices owed to ENI and Vitol, amounting to approximately US$480 million, bringing Ghana completely up to date on its obligations to the Sankofa partners.
In addition, the statement revealed that government paid about US$393 million in legacy debts to Independent Power Producers (IPPs) in 2025 alone. This followed the successful renegotiation of all IPP agreements to secure improved value for money and reduce long-term fiscal pressures.
The Ministry further noted that ongoing engagements with upstream partners, including Tullow Oil and Jubilee Field partners, have resulted in an agreed roadmap to ensure full and timely payment for gas supplies, improve power reliability, and support industrial growth.
These engagements, the Ministry said, have already led to increased gas production, significantly reducing Ghana’s reliance on expensive liquid fuels for power generation and contributing to a more sustainable and resilient energy sector.
The government maintains that the reforms mark a critical step towards securing reliable electricity supply, strengthening investor confidence, and supporting long-term economic growth.
