By President John Mahama has announced major strides in stabilising Ghana’s energy sector, revealing that government has fully repaid a $500 million World Bank guarantee and cleared outstanding gas debts owed to key partners.
Addressing the Nation on February 27, the President said declining crude oil production between 2019 and 2024, which dropped by about 32% from 71.4 million barrels to 48.2 million barrels, had significantly eroded investor confidence.
President announces full repayment of $500m World Bank facility, PPA renegotiations and expanded solar projects to boost power stability.
However, he indicated that decisive policy actions have restored credibility and strengthened Ghana’s standing globally.
“As of December 31, 2025, government has fully repaid and restored the entire $500 million World Bank guarantee, including interest. This has reinstated the facility in full and reaffirmed Ghana’s standing as a credible and reliable partner on the global stage,” he said.
President Mahama further disclosed that Ghana is now fully current on its gas payment obligations.
“We are paying for every gas we are consuming today,” he declared.
Between January and December 2025, government settled all outstanding gas invoices owed to Eni and Vitol, amounting to approximately $500 million.
As a result, Ghana is now fully up to date with its obligations to the Sankofa partners. He added that the 2026 Budget has made adequate provisions to ensure timely payments for all liquefied natural gas consumed going forward.
Engagements have also been held with Tullow Oil and the Jubilee Field partners, leading to a comprehensive payment roadmap.
“This approach supports reliable nationwide electricity generation and has erased industrial growth constraints,” he noted.
On power sector reforms, the President revealed that renegotiations with nine Independent Power Producers (IPPs) have resulted in immediate savings of $250 million and the restructuring of $1.1 billion in legacy debt for payment between 2026 and 2028.
The revised agreements, he said, will be submitted to Cabinet and later brought before Parliament for ratification.
He also highlighted reforms at the Electricity Company of Ghana (ECG), including the operationalisation of its Single Account system to reduce revenue leakages and strengthen payment capacity.
However, he expressed concern over persistent system losses.
“It is worrying that ECG continues to experience high power losses, with around 25% of generated power lost. To address this and anchor the gains we have made, adopting private sector participation, particularly in billing and collection, is the most effective way to significantly reduce these losses,” he said.
Cabinet, he disclosed, has approved a multiple-lease concession model for electricity distribution utilities.
President Mahama also outlined progress in renewable energy expansion.
The Bui Power Authority has completed an additional 15 megawatts of solar power, while rooftop solar installations have added 30 megawatts — bringing Ghana’s total installed solar capacity to 250 megawatts, representing 5% of the national generation mix.
He further revealed that construction has begun on a 200-megawatt solar power project at the Dawa Industrial Zone, with the first 100 megawatts expected by December 2026.
In addition, the Ministry of Energy and Green Transition is constructing 35 mini-grids to serve 47 island and lakeside communities in the Oti, Savannah and Bono East regions. Plans are also underway to deploy 12,000 smart net meters beginning in the first quarter of 2026.
Under the off-grid solar programme for public institutions, materials for 350 solar systems have already been delivered.
“Public institutions are going to be fitted with solar to reduce their power consumption,” the President stated.
Towards Universal Access
Under the Rural Electrification Programme, 200 out of 400 targeted communities have been connected to the national grid, with another 100 at various stages of completion. National electricity access now stands at 89.05%.
“We are committed to ensuring that every Ghanaian has access to reliable, affordable electricity,” President Mahama affirmed.
