The Government of Ghana has announced that it has successfully settled long-standing financial obligations in the energy sector totalling about US$1.47 billion as of December 31, 2025. This was disclosed in an official release from the Ministry of Finance, which indicated that the payments were completed within the first year of the Mahama Administration, helping to stabilise a sector that had been under severe financial strain for years.

A key component of the intervention was the complete reimbursement of the World Bank Partial Risk Guarantee (PRG), which had been exhausted following prolonged defaults during the tenure of the previous government.

In a statement issued on Monday, January 12, the Finance Ministry confirmed that a total of US$597.15 million, including accrued interest, had been paid to fully reinstate the PRG facility.

The government also cleared all unpaid gas supply bills owed to ENI and Vitol, whose resources are used for power generation. These settlements amounted to roughly US$480 million by the end of 2025, placing Ghana in full compliance with its financial commitments to partners involved in the Sankofa Gas Project.

Clearing Debts to Gas Suppliers and Power Producers

The overall US$1.47 billion spent during the 2025 budget year was distributed across major segments of the energy sector, including:

Sankofa Gas Project Partners (ENI and Vitol): Nearly US$480 million was used to pay outstanding gas supply charges, ensuring uninterrupted fuel supply for electricity production.

Independent Power Producers (IPPs): About US$393 million was disbursed to reduce accumulated debts owed to IPPs within the year.

Long-Term Planning: Fresh arrangements were concluded with Tullow Oil and partners in the Jubilee Field to establish a more reliable framework for future gas purchase payments.

The Ministry of Finance emphasized that strengthened financial controls and sufficient budget allocations have been introduced to guarantee consistent and prompt settlement of energy sector obligations in the years ahead.