Ghana’s Mahama Administration Successfully Tackles Energy Sector Debt. City, Country — Accra, Ghana — January 12, 2026 The Government of Ghana, under President John Dramani Mahama, has successfully cleared a significant portion of the country’s energy sector debt, totaling approximately US$1. 47 billion in the fiscal year of 2025.
This achievement marks a critical step towards financial stability and the restoration of investor confidence.
The debt, accumulated over years of non — payment for gas supplied to the power sector from the Offshore Cape Three Points (OCTP) field, had pushed the energy sector to the brink and depleted the World Bank Partial Risk Guarantee (PRG) of US$500 million, which was a critical safeguard for private sector investments.
According to official statements, the government has fully repaid US$597.
15 million, inclusive of interest, drawn on the World Bank Guarantee, effectively restoring the facility in full.
Additionally, all outstanding gas invoices owed to ENI and Vitol for electricity generation, totaling approximately US$480 million, have been settled, ensuring that Ghana is fully current on its obligations to the Sankofa partners.
The government’s actions have not only cleared inherited arrears but have also secured adequate budgetary provisions to sustain timely payments going forward.
Constructive engagements with Tullow Oil and the Jubilee Field partners have led to a comprehensive roadmap to guarantee full payment for all gas off — taken, supporting reliable electricity generation and industrial growth.
Furthermore, the Mahama Administration has renegotiated all Independent Power Producer (IPP) agreements to secure improved value for money for the Ghanaian people, paying approximately US$393 million in legacy IPP debts in 2025. This comprehensive approach, guided by the Ministry of Energy’s Cash Waterfall Mechanism, has resulted in increased gas production and a clear national vision to rapidly scale up domestic gas supply, meet the country’s growing energy demand, and reduce reliance on expensive liquid fuels.
The government has assured the public, industry stakeholders, and international partners that the era of uncontrolled energy sector debt accumulation is over, emphasizing its commitment to prudent financial management and responsible leadership. Further details are expected as the government continues to implement measures to stabilize the energy sector and ensure sustainable economic growth.
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Source: Mahama Administration Pays US$1.
47 Billion to Clear Energy Sector Debt and Restore World Bank Guarantee within First Year — Zawya. Com/en/press-release/africa-press-releases/mahama-administration-pays-us1470-billion-to-clear-energy-sector-debt-and-restore-world-bank-guarantee-within-e4cergos (zawya.
*Additional reporting by ImNews | Sources consulted: 5*
