Ghana’s petroleum sector is facing mounting pressure after the country recorded a sharp drop in oil revenue, losing nearly 600 million dollars in a single year, according to the latest report by the Public Interest and Accountability Committee (PIAC).
The report shows that total petroleum receipts fell by 43.27 percent, declining from 1.36 billion dollars in 2024 to 770.27 million dollars in 2025. This steep fall is closely tied to a sustained drop in crude oil production, which has now declined for six consecutive years.
Output decreased from 71.44 million barrels in 2019 to 37.3 million barrels in 2025, reflecting an average annual decline of about 9 percent. The downturn is attributed to a mix of maturing oil fields, natural reservoir depletion, technical challenges, and limited investment in upstream exploration.
The report also points to operational inefficiencies within the sector. High levels of gas reinjection, particularly in the TEN field, where reinjection reached 81 percent, suggest constraints in gas utilization and reduced field efficiency. In addition, the absence of revenue inflows from the TEN field in 2025 further worsened the overall revenue performance.
Beyond production challenges, the report highlights structural weaknesses in Ghana’s petroleum revenue base. Revenue remains heavily concentrated in just two fields, Jubilee and SGN, leaving the country vulnerable to shocks in output or pricing.
DACF shortfall and compliance concerns
A major issue raised in the report is the failure to comply with statutory requirements on revenue allocation. Only 0.43 percent of the Annual Budget Funding Amount (ABFA) was transferred to the District Assemblies Common Fund (DACF), far below the mandated minimum of 5 percent.
PIAC describes this as a breach of both statutory and constitutional provisions, raising concerns about the government’s adherence to the Petroleum Revenue Management Act (PRMA) and its obligations to support local development.
The report also notes that 434.55 million dollars allocated for infrastructure under the government’s Big Push programme remained unutilized and parked in a suspense account throughout the year. This non-utilization of funds has raised further questions about efficiency and planning in public financial management.
Transparency remains another concern. PIAC points to limited stakeholder consultation and insufficient disclosure surrounding recent amendments to the PRMA, which it says undermines public trust and accountability.
Concerns over petroleum fund management
While the total value of the Ghana Petroleum Funds increased slightly from 1.46 billion dollars to 1.55 billion dollars, the report cautions that this masks underlying governance issues.
In particular, the capping of the Ghana Stabilization Fund at 100 million dollars was not applied in line with legal requirements. This deviation raises concerns about compliance with established rules and the overall integrity of the petroleum revenue management framework.
At the same time, the Heritage Fund recorded some growth, but this was offset by the decline in the Stabilization Fund, which is meant to cushion the economy during revenue shortfalls.
GNPC and energy sector risks
The report also flags serious financial and accountability concerns within the Ghana National Petroleum Corporation (GNPC). Receipts to GNPC declined by 61.55 percent, largely due to reduced petroleum inflows and policy changes.
Despite the drop in revenue, GNPC continues to face rising financial obligations, including significant cash call requirements linked to the TEN field. More critically, PIAC identified 561.65 million dollars in petroleum revenue that remains unaccounted for by Explorco, GNPC’s subsidiary.
This raises major questions about transparency and financial reporting within state-owned petroleum entities.
In the broader energy sector, the Ghana National Gas Limited Company (GNGLC) continues to pose financial risks. Although its debt has reduced slightly, it still stands at a high 620.54 million dollars. Combined with tariff distortions and weak pricing structures, this creates the risk of revenue leakage and instability across the gas-to-power value chain.
PIAC recommendations
In response to these challenges, PIAC is calling for urgent reforms across the petroleum sector.
To address declining production, the committee is urging the government to create a more attractive investment environment for both existing fields and new exploration. It also recommends developing a medium-term plan to improve reservoir connectivity in the TEN field and extend its productive life.
On revenue management, PIAC is calling for strict compliance with legal provisions, particularly ensuring that the DACF receives its full allocation. It also recommends aligning provisions of the PRMA with the 1992 Constitution to resolve inconsistencies in revenue transfers.
The committee further recommends that the 434.55 million dollars allocated under the ABFA be released directly to the Ministry of Roads and Highways to fast-track infrastructure delivery. It is also pushing for greater transparency, including the publication of full project details and clearer branding of ABFA-funded projects.
To strengthen governance, PIAC is urging the revival of the stalled process to amend the PRMA and the development of a long-term national plan to guide the use of petroleum revenues.
On the management of petroleum funds, the committee recommends strict adherence to existing regulations, including applying the cap on the Stabilization Fund in line with L.I. 2381.
PIAC is also calling for stronger oversight of state-owned enterprises, directing GNPC and Explorco to account for and deposit the outstanding 561.65 million dollars into the Petroleum Holding Fund.
Finally, to address risks in the energy sector, the report recommends clarifying the policy framework for industrial gas pricing and implementing a time-bound plan to reduce GNGLC’s debt under the Cash Waterfall Mechanism.
