PIAC flags drop in petroleum revenues
By Praisebell Rosemond Larbi
Ghana’s petroleum revenue performance weakened in the first half of 2025, raising renewed concerns over fiscal discipline, transparency and the prudent management of oil resources, according to the latest report by the Public Interest and Accountability Committee (PIAC).
The 2025 Semi-Annual Report, covering the period from January to June, highlights a significant decline in inflows from the petroleum sector despite ongoing production from the country’s three key oil fields: Jubilee, Tweneboa-Enyenra-Ntomme (TEN), and Sankofa Gye Nyame (SGN).
These fields remain the backbone of Ghana’s oil industry, contributing revenues through royalties, carried and participating interests, corporate income taxes, surface rentals and other statutory payments.
Petroleum revenues have long been central to Ghana’s economic development, financing critical infrastructure projects and serving as a fiscal buffer through strategic savings in sovereign funds.
However, the new PIAC report warns that policy breaches and dwindling receipts could undermine the sector’s contribution to national growth and financial stability.
At the centre of the oversight framework is PIAC, established under Section 51 of the Petroleum Revenue Management Act (PRMA), 2011 (Act 815), to monitor and report on how petroleum revenues are collected and utilised.
The Committee’s semi-annual and annual reports, mandated by Section 56 of the Act, have become a cornerstone of transparency, shaping public debate and holding state institutions accountable.
Since its establishment, PIAC has released 27 such reports, including the current one, which marks the 14th in its semi-annual series.
Key Findings and Concerns
A major issue raised in the report is the continued breach of the legal framework governing the capping of the Ghana Stabilisation Fund (GSF).
The current cap of USD100 million, retained for 2025, contravenes Regulation 8 of L.I. 2381, which stipulates the proper formula for determining the ceiling. PIAC calculated that the correct cap should have been USD584.22 million, which is more than five times the amount applied.
As a result, the Fund’s closing balance of USD122.91 million may prove insufficient to cushion the economy in the event of a severe fiscal or economic crisis. PIAC noted that this breach has persisted since 2021 and urged Parliament to compel the Ministry of Finance to comply fully with the law to safeguard the Fund’s integrity.
The report also revealed a sharp decline in the financial performance of the Ghana National Petroleum Corporation (GNPC) during the first half of the year. GNPC’s total revenue dropped to USD65.26 million, while expenditure stood at USD59.45 million, representing declines of 42.91 per cent and 62.42 per cent, respectively, compared to the same period in 2024.
According to PIAC, these are the lowest mid-year revenue and expenditure levels recorded by GNPC since 2017 across all three producing fields. Of particular concern, GNPC did not receive any proceeds from the TEN Field during the period under review, despite spending USD2.45 million to meet its equity financing obligations in that field.
Call for Stronger Oversight
PIAC reiterated the need for stronger institutional compliance and improved fiscal governance to ensure the sustainable management of Ghana’s petroleum resources.
It emphasised that adherence to statutory requirements is essential not only for transparency but also for building public trust and safeguarding future generations from the volatility of oil revenue dependence.
