President-Elect John Dramani Mahama has addressed the ongoing energy challenges in the country, revealing that the outgoing government has left behind a staggering $2.5 billion debt.
Mahama criticized the current administration for managing to keep the lights on at a high cost, incurring substantial debt in the process. He explained that the government failed to pay off outstanding debts to energy suppliers, instead allocating funds to other sectors deemed more urgent.
Expressing concern over the losses incurred by the Electricity Company of Ghana (ECG), Mahama attributed these issues to poor governance decisions. “Instead of settling the debts owed to energy suppliers, the government chose to spend money on importing crude oil,” Mahama said.
He highlighted that the government prioritized importing crude oil over investing in Ghana’s own abundant gas reserves. By developing these resources, the country could supply cheaper gas and save billions of dollars annually. However, Mahama noted that the government’s actions have driven out upstream players, forcing them to seek refuge in neighboring Côte d’Ivoire.
“X-Mobile has exited, and Hesfield, which became AKA, has remained redundant for years. Talo, with discoveries, needs support to boost production, but instead, the government has engaged in unnecessary arbitration over taxes. The result has been a drastic decline in gas production,” Mahama stated.
Mahama’s remarks underscore the urgent need for reforms in the energy sector to address the mounting debt and ensure a stable and sustainable energy supply for the country.
