In 2025, Ghana government paid almost US$393 million to clear the legacy debt owed to Independent Power Producers (IPPs) in the country.
This amount is part of the over US$1.4 billion used to clear the energy sector debt that had bedeviled the nation’s power supply and strained its financial stability.
“In 2025 alone, Government paid approximately US$393 million in legacy IPP debts, further anchoring the gains made in restoring stability to the sector,” a statement issued by the Ministry of Finance on Monday, January 12, 2026, confirmed.
Also, government says it has renegotiated its contracts with all IPPs to ensure value-for-money for Ghanaians.
“As part of its broader energy sector reset, the Mahama Administration has successfully renegotiated all Independent Power Producer agreements to secure improved value for money for the Ghanaian people.”
Meanwhile, the nation’s outstanding gas invoices owed ENI and Vitol have also been cleared, setting a current pathway between the state and the Sankofa partners.
“Between January and December 2025, Government, through carefully coordinated policy actions, also settled all outstanding gas invoices owed to ENI and Vitol for electricity generation. These payments totalled approximately US$480 million, ensuring that Ghana is fully current on its obligations to the Sankofa partners,” portions of the statement added.
It added that the government, through prudent financial management, has secured adequate budgetary provisions to sustain timely payments going forward.
Also, constructive engagements with Tullow Oil and the Jubilee Field partners have been made, agreeing on a comprehensive roadmap to guarantee full payment for all gas off-taken.
“This approach is aimed at supporting reliable nationwide electricity generation while accelerating industrial growth.”
The statement further espoused the government’s plans to prudently implement the Cash Waterfall Mechanism by the Energy Ministry to improve payments to all IPPs to avoid the recurrence of such debts in the future.
“Beyond clearing inherited arrears, and through disciplined implementation of the Cash Waterfall Mechanism by the Ministry of Energy, Government has remained current on largely all IPP invoices for 2025 and is firmly committed to further improving payment performance across all IPP obligations going forward.
“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.”
Gov’t clears over US$1.4bn decades-old energy sector debt, boosting global credibility
