The former Member of Parliament for Bongo, Edward Abambire Bawa, has disclosed that the National Democratic Congress (NDC) government left office in 2017 with an energy sector debt of approximately $2.4 billion.

He stated that this debt escalated under the administration of the New Patriotic Party (NPP), further exacerbating Ghana’s energy challenges.

Bawa attributed the worsening fiscal crisis in the energy sector to the NPP government’s failure to adequately address the debt and fulfil financial obligations to Independent Power Producers (IPPs).

This neglect, he argued, has contributed significantly to the country’s recent power outages and the overall instability in electricity supply.

Ghana has been experiencing frequent power cuts in recent months, which have been linked to the government’s inability to settle debts owed to IPPs.

These producers, responsible for a substantial portion of the nation’s electricity supply, are reportedly struggling to maintain operations due to delayed payments, further compromising the reliability of power delivery across the country.

In an interview with Channel One TV on Saturday, January 11, 2025, Bawa acknowledged that the NDC left behind a considerable debt in the energy sector when it exited office. However, he asserted that the NPP’s poor financial management had aggravated the situation, pushing the sector into a deeper crisis.

Bawa explained that the $2.4 billion debt inherited by the NPP stemmed from the need for financial mechanisms like the Energy Sector Levy Act (ESLA) to address systemic issues within the sector.

He noted that, while the NDC had initiated efforts to stabilise the energy sector, the NPP administration had failed to build on these measures.

He concluded that the NPP government’s inaction and lack of strategic financial planning had caused the debt to balloon, leaving the energy sector in a precarious state.

According to Bawa, the growing indebtedness highlights the urgent need for better fiscal oversight and proactive management to resolve Ghana’s persistent energy challenges.