The Public Interest and Accountability Committee (PIAC) engaged members of the media to present and discuss its 2024 Semi-Annual Report on the management and utilization of Ghana’s petroleum revenues. The event, held on Saturday, November 30, 2024, in the Greater Accra Region, aimed to enhance transparency and accountability in the management of the country’s oil and gas resources.
The 2024 Semi-Annual Report, which is PIAC’s 13th since its establishment, covers petroleum revenue production and management between January and June 2024. It represents the Committee’s 26th Statutory Report.
Purpose and Highlights of the Report
Speaking at the event, PIAC officials emphasized their mandate of compliance monitoring, providing a platform for public debate, and conducting independent assessments on petroleum revenue management. The engagement was part of ongoing efforts to promote accountability and informed decision-making.
The report was compiled based on detailed reconciliation and analysis of production and revenue data received from relevant stakeholders. It offers insights into how petroleum resources are managed, their economic impact, and recommendations to ensure sustainability.
ABFA Management and Utilization
PIAC highlighted the need for the Annual Budget Funding Amount (ABFA) to be guided by the provisions of the Public Revenue Management Act (PRMA). According to the PRMA, the ABFA must be utilized in ways that maximize the rate of Ghana’s economic development. It should also aim to promote equal economic opportunities for all citizens and ensure that economic development is balanced across all regions of the country.
In the absence of a national development plan, the Minister of Finance is responsible for selecting up to four priority areas from those listed in the PRMA for the utilization of the ABFA. PIAC also emphasized that the priority areas chosen by the Minister must be reviewed every three years to ensure they align with Ghana’s development needs and maintain macroeconomic stability.
Challenges in Petroleum Revenue Management
The report acknowledged several improvements in the management of petroleum revenues but also pointed out notable challenges. PIAC identified delays in the completion of key projects, which have impacted the efficiency of revenue utilization. It was further noted that Ghana’s failure to make new oil discoveries has resulted in reduced investment in exploration and production activities.
Additionally, technical challenges such as equipment malfunctions and delays in maintenance have disrupted production activities. PIAC also highlighted inadequate infrastructure for gas processing, transport, and storage, which continues to negatively affect the country’s production capacity.
Key Findings for 2024
The 2024 Semi-Annual Report revealed several important findings. Crude oil production increased by 10.7% in the first half of 2024, reversing a decline of 13.2% recorded in the previous period. PIAC attributed this increase primarily to production activities from the Jubilee South East (JSE) project. Furthermore, total petroleum receipts during the period saw significant growth, rising by 55.6% due to the increase in production volumes.
Media Collaboration for Greater Accountability
The media engagement ended with a session focused on improving collaboration between PIAC and the press. Moderated by a veteran journalist, the session emphasized the need to enhance the capacity of reporters to effectively cover issues related to petroleum revenue management and accountability.
Credit: Appah Emmanuel
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