Energy debt is US$2.4 billion not US$5.2 billion – Minority to the government

Photo Credit:

The Minority in Parliament has indicated that the total debt in the energy sector inherited by the current government was US$2.4 billion and not US$5.2 billion as claimed by the President, His Excellency Nana Addo Dankwah Akufo-Addo.


The Minority averred that the legacy debt of approximately US$2.4 billion is a debt accumulated by successive governments between the years 1992 and 2015.

In a press conference organised by the Minority Leadership, the Ranking Member on the Parliamentary Select Committee on Mines and Energy and the Minority Spokespersons on Energy, Mr. Adam Mutawakilu, pointed out that US$250 million out of the US$2.4 billion was paid to banks by the previous government in 2016, to ease the liquidity crunch.

The Ranking Member, who doubles as the Member of Parliament for Damongo, reiterated that as at the end of 2016, the energy sector debt was approximately US$2.2 billion.

Mr. Mutawakilu argued that at the exit of the previous government, the US$2.2 billion amount was certified and agreed to be settled within three to five years from 2016, with the passage of the Energy Sector Levies Act, 2015 (Act 899).

He continued that at the end of 2016, almost all the State-Owned Enterprises (SOEs) in the energy sector reported profits, showing a strong sector performance.

Mr. Mutawakilu added that at the end of 2018, all state-owned enterprises in the energy sector reported losses, a clear sign of weak sector performance.

“We want the current government to provide better particulars on his claim that the previous government handed over a debt of US$5.2 Billion in the energy sector and account to Ghanaians on how the monies from the Energy Sector Levies Act has been utilised”, he explained.

Mr. Mutawakilu urged the President to explain to Ghanaians how the government intends to pay the energy debt to provide the required liquidity in the sector.

Source: GhanaJustice/S.Ayisi


Please enter your comment!
Please enter your name here