The National Petroleum Authority (NPA) is collaborating with the Bank of Ghana and credit bureaus to introduce credit ratings as a tool to enhance financial transparency in Ghana’s petroleum sector.

According to Abass Ibrahim Tasunti, Director of Regulation and Planning at the NPA, the initiative is designed to help businesses manage risks and improve creditworthiness within the oil marketing space.

In an interview on Joy News’ PM Express Business Edition, Abass Tasunti explained that the new credit rating system will allow Bulk Distribution Companies (BDCs) and Oil Marketing Companies (OMCs) to assess each other’s financial standing before entering into business transactions.

“If I am a BDC and I go and check your credit rating, and you are not doing well, I will not be willing to sell to you naturally,” he stated.

Abass Tasunti further highlighted that the credit rating system would be voluntary for OMCs and BDCs at the initial stage, but it is expected to gain traction as businesses realise its importance in reducing credit risks.

He noted that many international oil companies are already keen on such systems, and local companies are encouraged to join the platform to improve their business operations.

“If companies are not complying with some of these things, the industry on its own, with the credit rating program, can naturally fish them out,” Abass Tasunti stated.

The credit rating initiative, which has already seen significant progress in engagements with BDCs, will be rolled out fully by early next year.

“We are working together as an industry, and I am confident that by early next year, this will become a regular part of doing business in the sector,” Abass Tasunti said.