The government of Ghana, under President John Dramani Mahama, has announced the payment of approximately US$1.47 billion during the 2025 fiscal year to address longstanding debts in the energy sector, restore key international financial safeguards, and stabilize power eneration.
According to a detailed statement from the Ministry of Finance, led by Finance Minister Dr. Cassiel Ato Forson, the administration inherited a sector on the brink of collapse when it assumed office in January 2025. Years of accumulated arrears, particularly unpaid obligations for gas supplied from the Offshore Cape Three Points (OCTP) field, had fully depleted the US$500 million World Bank Partial Risk Guarantee (PRG).
Established in 2015 under a previous NDC administration, the PRG had been instrumental in unlocking nearly US$8 billion in private sector investment, including the ENI- and Vitol-led Sankofa Gas projects in a decisive move to reverse this, the government fully repaid US$597.15 million (including interest) drawn on the guarantee by December 31, 2025, restoring the facility to its full capacity and reaffirming Ghana’s credibility as a reliable partner to international investors and lenders.
Additional key payments included approximately US$480 million to settle all outstanding gas invoices owed to ENI and Vitol, bringing Ghana current on its Sankofa obligations. The administration also cleared around US$393 million in legacy debts to Independent Power Producers (IPPs) following successful renegotiations of agreements to secure better value for money. Beneficiaries included major players such as Karpowership (US$120 million), Cenpower, Sunon Asogli, and others.
These interventions, totaling US$1.47 billion, are described by the Ministry as a "major step toward rebuilding confidence, ensuring reliable electricity supply, and strengthening Ghana’s financial credibility." The government has further engaged upstream partners like Tullow Oil and Jubilee Field operators on a roadmap for guaranteed future payments, which has already boosted domestic gas production and reduced reliance on costly liquid fuels.The announcement comes amid broader efforts to reset the energy sector, including strict adherence to the Cash Waterfall Mechanism and commitments to prevent future debt accumulation.
The Ministry stated that these actions demonstrate "fiscal discipline and responsible leadership" in tackling inherited challenges.The full statement and breakdown of payments were released via official channels on January 12, 2026, highlighting the administration's focus on restoring stability to one of Ghana's most vital sectors.
