Dr Cassiel Ato Forson is the Minister of Finance
The Ministry of Finance (MoF) has announced that the John Dramani Mahama administration has paid a total of US$1.470 billion within its first year in office to stabilise Ghana’s energy sector, clear legacy debts, and restore the country’s credibility with international partners.
In a statement issued on Monday, January 12, 2026, the Ministry said the decisive interventions have reversed what it described as one of the gravest threats to Ghana’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 Ministry, when President Mahama assumed office in January 2025, the sector was on the brink of collapse due to years of non-payment for gas supplied from the Offshore Cape Three Points (OCTP) field.
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The Ministry also revealed that the World Bank Partial Risk Guarantee (PRG) of US$500 million, which had been established in 2015 under a previous NDC government, had been completely exhausted by the prior administration.
“The Partial Risk Guarantee was a critical safeguard that enabled nearly US$8 billion in private sector investment into Ghana’s energy sector through the Sankofa Gas Project. Its exhaustion represented a serious governance failure that undermined Ghana’s international credibility,” the Ministry explained.
To reverse this, the government said it has fully restored the facility.
“In a clear demonstration of fiscal discipline and responsible leadership, Government has, as at 31 December 2025, fully repaid US$597.15 million, inclusive of interest, drawn on the World Bank Guarantee,” the statement said.
The Ministry added that the move has “restored the facility in full and reaffirmed Ghana’s standing as a credible and reliable partner on the global stage.”
It further disclosed that between January and December 2025, government settled all outstanding gas invoices owed to ENI and Vitol, totalling approximately US$480 million.
“These payments ensured that Ghana is fully current on its obligations to the Sankofa partners, and adequate budgetary provisions have been secured to sustain timely payments going forward,” the statement read.
Additionally, government said it has reached new payment arrangements with other upstream partners.
“We have held constructive engagements with Tullow Oil and the Jubilee Field partners, agreeing on a comprehensive roadmap to guarantee full payment for all gas off-taken,” the Ministry said.
It noted that the approach is meant to support “reliable nationwide electricity generation while accelerating industrial growth,” adding that these engagements have already led to increased gas production.
“Engagements with Ghana’s upstream partners have already resulted in increased gas production, guided by a clear national vision to rapidly scale up domestic gas supply and reduce reliance on expensive liquid fuels,” it stated.
As part of broader reforms, the government said it has also successfully renegotiated Independent Power Producer (IPP) contracts to secure improved value for money for the Ghanaian people.
In 2025 alone, government said it has paid about US$393 million in legacy IPP debts. Beneficiaries included 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.
MAHAMA ADMINISTRATION PAYS US$1.470 BILLION TO CLEAR ENERGY SECTOR DEBT AND RESTORE WORLD BANK GUARANTEE WITHIN FIRST YEAR
1.The Government of Ghana, under the leadership of President John Dramani Mahama, has decisively resolved the crippling energy sector debt that posed one of… pic.twitter.com/HTn8q8rHPU
— Cassiel Ato Forson (PhD) (@Cassielforson) January 12, 2026
MA
