Wins Praise from Power Firms and Unions
By Gifty Boateng
Government through the Finance Ministry, has announced the payment of a whopping US$1.4billion debt owned sector including Independent Power Generators (IPGs) after years of non-servicing by the erstwhile Akufo-Addo government, bringing a huge relief to the sector and it players.
Minister for Finance, Dr Cassiel Ato Baah Forson, first announced the favourable news through a statement issued on Monday, January 12, 2026.
According to the Ajumako Enyan Essiam constituency Member of Parliament (MP), as of December 31, 2025, the John Mahama administration had repaid a total of US$1.47 billion to rescue and reset the energy sector.
His claim has also been corroborated by the Independent Power Generators, Ghana (IPGGs) who have commended the government for settling a significant portion of legacy arrears owed to power generation companies, describing the move as a major step towards stabilizing the country’s energy sector.
The Ghana Private Road Transport Union (GPRTU), has welcomed the development expressing satisfaction and commending government for doing as it promised.
Government last year imposed GHS1 levy on every litre of petrol at the pump. That was the period world prices of fuel were reducing, and so government took the chance to introduce the initiative as part of the Energy Sector Levy (ESLA) to raise funds to pay the debt at the sector.
The transport operators initially opposed the decision but after further engagement with government, they agreed and asked that the funds be used for the intended purpose.
“We initially opposed the GHS1 because were not consulted by government. When we opposed it, government apologized and explained that it was intended to settle the debt at the energy sector to curb power cuts. So we understand and so it ended the confusion. So if today government has come out to say it has paid that amount and there is no load shedding, we are happy about it because that is what they promised us. We are happy to hear they have used the funds to avert any load shedding as was witnessed in the past”, Public Relations Officer, Alhaji Abass More, said in an interview with The New Republic on Monday, January 12.
In the IPGs’ statement, the group showered praises on the Ministry of Finance and the Ministry of Energy and Green Transition for ensuring the timely paying the arrears which have remained in their books for a very long time.
“The clearance of these long-outstanding obligations represents a major milestone in restoring financial stability and operational confidence across the power sector,” the IPGs said.
They noted that payments made in 2025 to independent power producers reflect “decisive leadership, disciplined fiscal management, and a clear commitment by government to resolving inherited structural challenges”.
The IPGs who in the past faced difficult times with the previous government, highlighted the strategic role of the Ministry of Finance in mobilising the required resources, as well as the Ministry of Energy and Green Transition, for implementing mechanisms such as the Cash Waterfall, which has improved payment performance to service providers.
“These actions have sent a powerful signal to both domestic and international investors that Ghana is firmly committed to honouring its contractual obligations,” the statement added.
According to the IPGs, the settlement has helped rebuild investor confidence in the country’s energy market and positioned Ghana to attract new investment, technology and long-term partnerships.
“As a result, investor confidence in Ghana’s energy sector has been meaningfully restored, supporting economic transformation and industrial development,” they said.
They reaffirmed their commitment to Ghana’s energy security and pledged to continue working with the government to maintain a reliable power supply, promote efficiency and ensure value for money across the sector.
“We remain confident that the collaborative spirit demonstrated in the resolution of these legacy arrears will continue to guide the government-IPG–IPG partnership towards a future of energy sustainability, financial discipline, and shared prosperity for the people of Ghana,” the statement concluded.
The exciting development, comes on the back of President John Dramani Mahama assuming office in January 2025, and meeting an almost collapsed sector due to years of non-payment for gas supplied to the power sector from the Offshore Cape Three Points (OCTP) field.
This situation had led to the complete depletion of the US$500 million World Bank Partial Risk Guarantee (PRG) under the previous administration.
The PRG, established in 2015, was a key safeguard that enabled nearly US$8 billion in private sector investment through the Sankofa Gas Project by guaranteeing payments to partners ENI and Vitol in the event of payment shortfalls.
The Ministry said the government has now fully repaid US$597.15 million, including interest, drawn on the World Bank guarantee, restoring the facility in full and reaffirming Ghana’s credibility with international partners.
The settlement comes months after government imposed GHs1 on a litre of fuel as an intervention to raise funds to settle the sector’s frightening debt to ensure there is no power crises as witnessed in the past.
Meanwhile, former Minister of Finance and Member of Parliament (NPP) for the Karaga constituency, Dr. Mohammed Amin Adam, has quizzed the publicity surrounding the government’s repayment of energy sector debts.
Reacting to the announcement on social media, Facebook, Dr. Amin noted that such repayments are nothing new. He said what the government is engaged in are pure Public Relations (PR).
“The NDC government does PR with everything. Paying Energy Sector debts of $1.4 billion is not new. As captured in the 2025 Budget presented by the NDC government, the previous NPP government paid $1.4 billion of the energy sector debts in 2024 without making noise about it,” he wrote.