Ghana Needs Clear Strategy to Turn Oil Wealth into Development — Prof. Patrick Asuming

Economist at the University of Ghana, Prof. Patrick Asuming, has questioned the country’s management of its oil resources, arguing that Ghana has little to show for more than a decade of oil production.

Speaking on the Business Breakfast on Zed with host, Nii Trebi Hammond, Prof. Asuming expressed concern over the absence of a clear national strategy to translate oil revenues into long-term economic transformation and job creation.

According to him, Ghana began commercial oil production about 15 years ago, yet the impact of the resource on national development remains unclear.

“What plans have been had for our oil wealth? Don’t forget that oil started flowing, I believe, in 2010 or in full year 2011. We’ve had 15 years. Where is the oil wealth? The oil proceeds, but where is it? And what is the plan for using it?” he questioned.

The economist noted that although Ghana established mechanisms such as the Heritage Fund and Stabilisation Fund to manage petroleum revenues, it remains uncertain whether these reserves have significantly benefited the country during difficult economic periods.

“When Covid started, we had been mining oil for about 10 years. We had the Heritage Fund and the Stabilisation Fund and all, but were they good enough to help us in any way? And since then, have we even replenished them?” he asked.

Beyond the direct revenue generated from oil production, Prof. Asuming stressed the need for deliberate policies that create opportunities for Ghanaians through local participation and support services linked to the petroleum industry.

“How have you made sure that the oil that we are producing has support services? How have you made sure that those support services are generating additional jobs outside of the direct money for Ghanaians?” he said.

He argued that the country has failed to pursue a coherent strategy that would allow it to fully benefit from its natural resources.

“We haven’t followed any clear strategy. So I think that with what we are doing, we can do this for 100 years and then we won’t catch up because we don’t have a clear strategy,” he stated.

Prof. Asuming also raised concerns about the implementation of Ghana’s local content policy, suggesting that some foreign firms have found ways to bypass the spirit of the law through partnerships that do little to build genuine local capacity.

While acknowledging the existence of local content requirements, he maintained that their intended benefits have not been fully realised.

“I don’t see the plan. I think that is where it all has to start—with a plan. A plan that people look at and say, ‘Oh yes, this is believable. If you follow this, it may be long, but eventually we get there.’ We don’t have it,” he concluded.

His comments add to ongoing discussions about how Ghana can better leverage its natural resources to drive industrialisation, create jobs, and achieve sustainable economic growth.