Ghana’s Finance Ministers broke the law for five years. They capped the Ghana Stabilisation Fund at just $100 million. The law required a cap of $584.22 million.
This happened between 2021 and 2025. The Public Interest and Accountability Committee (PIAC) revealed this. PIAC is an independent watchdog. It checks how oil money is used. PIAC Chair Richard Ellimah spoke at a recent event. He presented the 2025 Annual Report. The law mandates a higher cap based on oil revenue forecasts. For 2025, this average should be $584.22 million.
The calculations for the cap are specific. They involve averaging expected oil money. This averaging covers three years. The years are 2024, 2025, and 2026. This method results in a total of $1.75 billion. The average then becomes $584.22 million. Mr. Ellimah stated both ministers and Parliament acted unlawfully. They set and approved a lower cap. This decision affected the amount of money saved. It could impact Ghana’s ability to handle economic shocks.
This situation fits into broader concerns about Ghana’s public finance management. The Petroleum Revenue Management Act (PRMA) governs oil revenues. It aims to ensure transparent and responsible use of these funds. The law has been amended many times since 2011. These frequent changes can create confusion. They also risk undermining original objectives. A full review of the PRMA began in 2018. It stalled between 2020 and 2024.
PIAC wants the Finance Minister to use the correct cap amount. It also wants Parliament to enforce the law. This means ensuring budgets follow legal requirements. Mr. Ellimah pointed to the Ghana Infrastructure Investment Fund. This fund invested $30 million in the Accra International Airport. It earned $17.9 million in interest and fees. This shows the fund's potential when managed well. PIAC recommends bringing the fund back under the PRMA. This would allow more money for commercial projects.
PIAC also noted other changes to the PRMA. Parliament passed two amendments in 2025. One amendment in March directed the Annual Budget Funding Amount. It now goes only to infrastructure projects under the Big Push programme. This amendment also removed PIAC's guaranteed funding. It cut the Ghana National Petroleum Corporation’s share from 30% to 15%. A second amendment in December expanded investment options for the Ghana Petroleum Fund. The Finance Minister explained this change. It allows money from the Heritage Fund for energy projects and the 24-Hour Economy Programme.
Mr. Ellimah warned of future risks. 2026 marks 15 years since the PRMA started. This is when Parliament can review the rule. This rule limits transfers from the Ghana Heritage Fund. Currently, only some interest can be withdrawn. Not the main amount. The law lacks clarity on withdrawal amounts. This creates uncertainty for investors and planners. PIAC calls for one complete PRMA review. This review should involve public input. It should set clear rules for project selection. It must improve spending oversight. Independent performance checks are also needed.
The government should also publish full project details. PIAC urged following the rule for the District Assemblies Common Fund. This rule allocates 5% of oil revenues. The 2019 review of the PRMA needs restarting. A long-term national development plan, approved by Parliament, is also recommended. These steps will help ensure better management of Ghana’s oil wealth.