The Executive Director of the Africa Centre for Energy Policy (ACEP), Benjamin Boakye, has concerns about the dire state of Ghana’s energy sector, describing it as a sector “systematically decimated” by mismanagement and inefficiencies.

In an opinion piece addressed to President-elect John Mahama, he outlined the critical challenges that demand immediate action to prevent further economic destabilisation.

“The energy sector has been systematically decimated, enriching a few while the public bears the burden through the budget, levies, and high margins,” he wrote.

He revealed that the sector wastes over GH¢50 billion annually, an amount that dwarfs the nation’s annual oil revenue and poses a significant risk to economic stability.

One of the most glaring issues, according to Ben Boakye, is the bloated structure of energy agencies and companies.

“The energy sector is riddled with agencies and companies that are 4-5 times larger than what was needed to perform the same work eight years ago,” he noted.

This overstaffing, fueled by political appointments, has created redundant directorates and unnecessary institutions, burdening the public.

Another pressing issue is the deteriorated state of the Electricity Company of Ghana (ECG), which has become a major drain on the national budget.

Ben Boakye lamented, “Politicians have mismanaged it to the point where it has become the single largest dependant of the national budget.”

This mismanagement, coupled with procurement abuses and exchange rate manipulations, threatens the upstream oil and gas sector, with gas payments to investors now uncertain.

Ben Boakye also highlighted waste in the downstream petroleum sector, which imposes inflated margins on the public to sustain political interests.

He identified over GH¢6 billion in what he termed the “black tax,” which, if redirected, could address pressing development needs.

He warned of the declining upstream oil and gas sector, calling for urgent measures to restore investor confidence.

“We are witnessing its decline unfold before our eyes,” Ben Boakye stated, adding that strategic action could unlock $2 billion in investments by 2025, out of a potential $6 billion in the medium term.

He stated that fixing the energy sector requires “surgical examination” and urged President-elect Mahama to act decisively to restore order and efficiency.