The Government of Ghana has announced that it has successfully cleared legacy energy sector debts amounting to approximately US$1.47 billion as of December 31, 2025, marking a major milestone in efforts to stabilise the country’s energy sector.
According to a statement issued by the Ministry of Finance on Monday, January 12, the payments were made within the first year of the Mahama Administration and targeted long-standing arrears that had pushed the energy sector close to collapse. The ministry explained that the intervention was aimed at restoring confidence, improving liquidity across the energy value chain, and preventing future supply disruptions.
A key component of the debt clearance was the full repayment of the World Bank Partial Risk Guarantee (PRG), which had previously been exhausted due to persistent non-payment. Government repaid US$597.15 million, inclusive of interest, thereby fully restoring the PRG facility and strengthening Ghana’s credibility with international development partners.
In addition, the government settled all outstanding gas supply invoices owed to ENI and Vitol, the partners in the Sankofa Gas Project, which supplies gas for electricity generation. These payments amounted to approximately US$480 million as at the end of 2025, ensuring that Ghana is fully up to date on its obligations to the project partners.
Beyond gas payments, the Ministry of Finance disclosed that government also made significant progress in reducing debts owed to Independent Power Producers (IPPs). In 2025 alone, about US$393 million was paid toward legacy IPP obligations, easing financial pressure on power producers and supporting stability in electricity supply.
The statement further revealed that new strategic agreements have been reached with Tullow Oil and Jubilee Field partners, establishing a sustainable roadmap for future gas off-take payments. These arrangements are expected to prevent the accumulation of new arrears and promote long-term financial discipline in the sector.
The Ministry of Finance emphasised that prudent fiscal management, together with adequate budgetary provisions, has been put in place to ensure timely payments going forward. Government says these measures will help safeguard the gains made, strengthen the energy sector, and support broader economic recovery.
