Finance and Energy Policy Analyst, Mr. Richmond Eduku
Finance and Energy Policy Analyst, Mr. Richmond Eduku, has urged Ghana to balance its oil ambitions with urgent fiscal and climate realities, warning that the country faces a “central paradox”: consolidating finances while depending heavily on hydrocarbons.
In a statement, he recounted that, in July 2025, the IMF’s Executive Board approved the fourth review of Ghana’s $3 billion Extended Credit Facility, unlocking $367 million.
“The conditions, however, are clear; energy-sector reform is now a fiscal priority. By May 2025, the government admitted to $2.5 billion in arrears to power producers and gas suppliers, while the Electricity Company of Ghana was losing 40% of its revenues,” he said.
Government has pledged to cut arrears by the end of 2025 and is considering private partners for billing and collections. At the same time, it is pushing to “maximize oil and gas extraction”, a move Mr. Eduku cautions must be weighed against long-term risks.
“Oil expansion cannot be judged only by short-term royalties; it must be weighed against adaptation costs and volatile demand in a decarbonising world,” he said.
Rising climate threats
Ghana’s Country Climate and Development Report warns that up to one million people could fall into poverty by 2050 without urgent adaptation. The poorest could lose 40% of their incomes, while flooding and coastal erosion already displaces tens of thousands annually.
Richmond Eduku argues, that every oil decision must pass the test of fiscal prudence and resilience. “Ghana can expand oil and meet its climate obligations, but only if upstream choices are disciplined and future-proof,” he noted.
Global lessons
Countries like Jordan, Greece, Spain, and Portugal have shown that fiscal recovery, reliable power, and low-carbon growth can go hand in hand. Through tough reforms, utility clean-ups, and renewable energy scaling, they stabilised finances while building sustainable power systems.
Eduku believes Ghana can follow suit by redirecting guarantees and state support from rigid gas contracts toward grids, storage, and climate resilience.
“The path to true energy security is one that pays the bills, keeps the lights on, and shields Ghanaians from the climate already at the door,” he further stated.
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