Mahama's Government Clears $1.47 Billion Energy Sector Legacy Debt in First Year
- The John Mahama-led government has reportedly cleared Ghana’s $1.47 billion energy sector debt, according to the Finance Minister
- Dr Cassiel Ato Forson said US$597.15 million and an additional US$480 million in gas arrears had been fully paid by December 31, 2025
- He added that a roadmap had been agreed upon with Tullow Oil and others to ensure a sustainable gas supply and power generation
The Government of Ghana, led by President John Dramani Mahama, has reportedly paid its $1.47 billion energy sector debt.
This was disclosed by the Finance Minister, Dr Cassiel Ato Forson, in a statement released on Monday, January 12, 2026.
Source: Facebook
According to him, before the ruling National Democratic Congress (NDC) assumed office in January 2025, the energy sector debt was pushed to the brink by what he described as years of 'persistent non-payment for gas supplied to the power sector from the Offshore Cape Three Points (OCTP) field'.
As a result of this, the Finance Minister said that a World Bank Partial Risk Guarantee had been wiped out under the erstwhile administration led by former President Nana Akufo-Addo.
"When President Mahama assumed office in January 2025, 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," Dr Forson's statement read.
Additionally, the Finance Minister stated that the government has fully repaid US$597.15 million, inclusive of interest, as at December 31, 2025.
"This achievement has restored the facility in full and reaffirmed Ghana’s standing as a credible and reliable partner on the global stage."
He added that the government has also settled all outstanding gas invoices owed to ENI and Vitol for electricity generation between January and December 2025.
These payments, he said, totalled approximately US$480 million, which had ensured that Ghana was up to date on its obligations to the Sankofa partners.
"Through prudent financial management, adequate budgetary provisions have been secured to sustain timely payments going forward," the statement added.
Ghanaian government engages Tullow, Jubilee Field partners
Dr Ato Forson further disclosed that the government had also held constructive engagements with Tullow Oil and the Jubilee Field partners, and agreed on a comprehensive roadmap to guarantee full payment for all gas off-taken.
According to him, this approach is aimed at supporting reliable nationwide electricity generation while accelerating industrial growth.
"Engagements with Ghana’s upstream partners have already resulted in increased gas production, guided by a clear national vision to rapidly scale up domestic gas supply to meet the country’s growing energy demand and reduce reliance on expensive liquid fuels.
"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."
Read the Facebook post below:
The Finance Minister said in 2025 alone, the government had paid approximately US$393 million in legacy IPP debts.
Below is the breakdown of the legacy IPP debts, as provided by the Finance Minister:
- Karpowership Ghana Co. Ltd - US$120,000,000
- Cenpower Generation Co. Ltd - US$59,444,180
- Twin City Energy (Amandi) - US$37,986,534
- Early Power Ltd - US$42,000,000
- BXC Company Ltd - US$10,560,000
- Meinergy Technology - US$8,820,000
- Sunon Asogli Ghana Ltd - US$54,000,000
- AKSA Energy Limited - US$30,000,000
- Cenit Energy Ltd - US$30,000,000.
Source: Twitter
Finance Minister claims Ghana economy is stronger
In related news, YEN.com.gh, Dr Cassiel Ato Forson claimed that Ghana’s economy was recovering strongly under his leadership.
He announced the scrapping of the controversial COVID-19 levy, which would return GH¢3.7 billion to individuals and businesses.
Dr Ato Forson attributed this success to the management of the economy to the sacrifices and resilience of the Ghanaian people.
Proofreading by Bruce Douglas, copy editor at YEN.com.gh.
Source: YEN.com.gh
