JoyNews Research has found that the Government of Ghana still owes Independent Power Producers (IPPs) more than $700 million in legacy debt, despite earlier disclosures that significant payments had been made to clean up arrears in the energy sector.

The government had previously announced that it settled about $1.47 billion in energy sector debt in 2025, including $393 million paid to IPPs. However, official data tracked by JoyNews Research indicate that the current John Mahama administration inherited approximately $1.4 billion in legacy IPP obligations, which were subsequently subjected to a restructuring exercise in 2025.

According to the Finance Minister, Dr. Cassiel Ato Forson, the restructuring involved burden-sharing arrangements with IPPs, resulting in substantial debt write-offs. Speaking during the presentation of the 2026 Budget, he said the negotiations delivered tangible fiscal relief.

“The renegotiations have delivered concrete results. They have saved the nation over $250 million, while reprofiling the remaining $1.1 billion in legacy obligations over a four-year period,” he told Parliament.

However, independent checks by JoyNews Research show that after accounting for the $393 million already settled, about $707 million of the reprofiled IPP debt remains outstanding. This suggests that a significant portion of the legacy obligations is yet to be fully cleared.

Government disclosures to the International Monetary Fund (IMF) indicate plans to reschedule the remaining payments over a four- to five-year period, with the Finance Minister projecting that the process could be completed by 2028.  

The plan for this year is clear, Ghana’s government has “programmed an additional US$345 million for payment in 2026”.