PIAC calls on Government to speed up sustainable development of petroleum resources

The Public Interest and Accountability Committee (PIAC) has urged the Government to take action towards the sustainable development of petroleum resources in order to reverse the decline in production. Mr Nasir Alpha Mohammed, the Vice Chairman of PIAC, stated that the Government should attract new investors into the sector and ensure the early completion of ongoing projects.

In a forum organised by PIAC in Wa, stakeholders in the Upper West Region of Ghana gathered to give their inputs into the management and utilisation of petroleum revenues in the country. Participants included heads of departments and agencies, security services, representatives of political parties, district chief executives, civil society organisations, and traditional leaders.

Mr Mohammed revealed in a presentation on petroleum revenue management and utilisation for 2022 that out of a total of $1,428,760,076.93 revenues realised, GHȻ33,750,184.39 went to the Ghana National Petroleum Corporation. GHȻ526,308,309.00 was allotted to the Annual Budget Funding Amount to support the government’s projects in the communities.

An excess of GHȻ407 million was also deposited into the Ghana Stabilisation Fund to aid the Government in supporting the economy in times of unforeseen petroleum revenue shortfalls and fiscal imbalances.

“Successive governments have used this fund (Ghana Stabilisation Fund) such that when COVID-19 hit us, we were scrambling for money when we could have relied on this particular fund,” Mr Mohammed said.

He pointed out that petroleum production in Ghana has been decreasing over the past few years, making it necessary for significant investment to discover additional oilfields. He emphasised that the Government should take necessary measures to bring new investors into the sector and complete ongoing projects.

For the most part, PIAC’s call to the Government to act on sustainable development of petroleum resources aims to reverse the decline in production of petroleum products. Mr Mohammed’s presentation highlights the allocation of petroleum revenues in 2022, including funds for the Ghana National Petroleum Corporation, the Annual Budget Funding Amount, and the Ghana Stabilisation Fund. With the decline in petroleum production over the past few years, PIAC urges the Government to attract new investors into the sector and complete ongoing projects to discover additional oilfields.