Ghana has earned over US$11.5 billion from petroleum revenues since 2011, but the management and distribution of this wealth remain a significant challenge, according to the Public Interest and Accountability Committee (PIAC).

Speaking to fellows of the Africa Extractives Media Fellowship, Isaac Dwamena, PIAC Coordinator, emphasized that while Ghana has made progress in revenue collection and transparency, much remains to be done to ensure oil wealth translates into tangible benefits for citizens.

“Petroleum is a finite resource. To derive maximum benefit, we need a paradigm shift, a plan, and strong commitment to implementation, including monitoring and evaluation,” Dwamena told the journalists.

Oil Production and Revenue Trends

Ghana’s crude oil production peaked at 71.4 million barrels in 2019, with cumulative output from three major fields reaching 675 million barrels by mid-2025. Gas production and utilisation have also expanded, supporting domestic energy needs and exports.

Petroleum revenue streams include royalties, surface rentals, corporate income taxes, and carried and participating interests. These are deposited into the Petroleum Holding Fund (PHF) before allocation to the Annual Budget Funding Amount (ABFA), the Ghana National Petroleum Corporation (GNPC), and the Ghana Petroleum Funds (GPFs)—the Stabilisation Fund and Heritage Fund.

ABFA Spending: Gains and Gaps

Between 2011 and 2024, ABFA allocations supported infrastructure, health, education, agriculture, and industrialisation. But Dwamena noted that some priority areas, like industrialisation, saw allocations fall from 1.15% in 2020 to 0% in 2024, underscoring challenges in planning and execution.

He added: “Without a long-term national development plan, petroleum revenues risk being spent ineffectively, and opportunities for sustainable growth are lost.”

Ghana Petroleum Funds: A Safety Net for the Future

As of mid-2025, the Heritage Fund holds US$1.3 billion, while the Stabilisation Fund contains US$123 million. Dwamena warned that ministerial discretion and inconsistent application of statutory formulas have limited the funds’ effectiveness.

PIAC’s Impact and Way Forward

PIAC has influenced policy and governance, including advocacy for Free Senior High School, project inspections, and audits of oil companies. Still, Dwamena acknowledged the committee faces hurdles, including limited enforcement powers, political risk, and weakened financial independence.

“Citizens are the true owners of this resource,” he stressed. “The time to act is now to ensure petroleum wealth benefits all Ghanaians, today and in the future.”

The Africa Extractives Media Fellowship is a capacity-building programme designed to equip journalists across the continent with the skills and knowledge to report accurately and critically on extractive-sector governance, transparency, and accountability.