The Public Interest and Accountability Committee (PIAC) has accused Ghana’s government of breaking the law. It states that between 2021 and 2025, the Ghana Stabilisation Fund was capped at $100 million. The law requires this cap to be $584.22 million.
Samuel Bekoe, Chair of PIAC’s Technical Sub-Committee, explained the issue. The Petroleum Revenue Management Act directs the cap’s calculation. It must be based on average expected petroleum revenue over three years. For 2025, the required average is $584.22 million. This comes from projected oil revenues of approximately $1.75 billion for 2024, 2025, and 2026. Both the Finance Ministry and Parliament are blamed for these unlawful actions.
This situation is part of a larger story about Ghana's management of oil revenues. Since Ghana began producing oil in 2010, these funds are meant to benefit the nation. The Petroleum Revenue Management Act, passed in 2011, guides how this money is used. PIAC, an independent watchdog, ensures transparency and accountability. However, the fund cap issue highlights a mismatch between legal requirements and government actions. This raises questions about the effective use of a crucial national resource.
Mr. Bekoe urged the Finance Minister to use the correct figure moving forward. He also called on Parliament to enforce the law during budget approvals. PIAC also recommended new rules for transferring funds for the "Big Push" program. These funds come from the Annual Budget Funding Amount (ABFA). They go to the Ghana Infrastructure Investment Fund (GIIF). The effectiveness of GIIF was highlighted by its investment in Accra International Airport.
This breach could have financial implications. A lower cap on the Stabilisation Fund means less money is available to safeguard Ghana's economy during tough times. It might also signal less stringent adherence to fiscal rules. PIAC's call for legislative action and a comprehensive review of the Petroleum Revenue Management Act is crucial. Citizens will be watching to see if the government corrects its course and strengthens oversight of oil revenues. The upcoming 15th anniversary of the Act in 2026 is a significant point for potential reviews of withdrawals from the Ghana Heritage Fund.