Government has cleared the longstanding energy sector levy that has crippled the nation’s energy supply for years and imposed a strain on Ghana’s financial stability.
This includes a settlement of US$597.15 million drawn on the World Bank Guarantee, inclusive of interest, paid by close of 2025, as part of the government’s efforts to ensure fiscal discipline.
In a statement issued by the Ministry of Finance on Monday, January 12, 2026, it said the payment has restored Ghana’s credibility as a responsible partner on the world stage.
“The Government of Ghana, under the leadership of President John Dramani Mahama, has decisively resolved the crippling energy sector debt that posed one of the gravest risks to Ghana’s financial stability
“In a clear demonstration of fiscal discipline and responsible leadership, Government has, as at 31 December 2025, fully repaid US$597.15 million, inclusive of interest, drawn on the World Bank Guarantee. This achievement has restored the facility in full and reaffirmed Ghana’s standing as a credible and reliable partner on the global stage,” the statement said in some parts.
As of 2025, when the new administration took over, the energy sector had been pushed to the brink by years of persistent non-payment for gas supplied to the power sector from the Offshore Cape Three Points (OCTP) field. As a result, the World Bank Partial Risk Guarantee of US$500 million had been completely depleted under the previous administration.
The Partial Risk Guarantee (PRG), established in 2015 under the previous NDC Government, was a critical safeguard that enabled nearly US$8 billion in private sector investment into Ghana’s energy sector through the Sankofa Gas Project.
It was designed to guarantee payments to the project partners, ENI and Vitol, in the event of payment shortfalls. Its exhaustion represented a serious governance failure that undermined Ghana’s international credibility.
Meanwhile, other payments to Independent Power Producers (IPP) have also been made by the government, eroding the threats posed by producers to the nation’s energy supply as a result of non-payment of funds.
“Altogether, the Ministry of Finance has paid approximately US$1.470 billion in the 2025 fiscal year to rescue and restore Ghana’s energy sector.”
The government assured “the general public, industry stakeholders, and international partners that the era of uncontrolled energy sector debt accumulation is over.”
Ghana’s energy sector was bleeding when we took over with annual shortfalls over $1.5bn – Ato Forson
