Ghana Gas Flags Overstaffing as Major Driver of Rising Operational Costs
The Ghana National Gas Company is grappling with surging operational costs, largely driven by a sharp rise in staffing levels over the past eight years.
Speaking before Parliament’s Energy Committee on Friday, June 20, Chief Executive Officer Judith Blay described the current staffing level of 1,290 as “serious overstaffing,” stressing that the company’s expanding payroll is becoming a major financial strain.
“At Ghana Gas, we are about 1,290 in number. This is the staff strength. I needed to establish that because I know that honourable members are interested in employment. Ghana Gas is seriously overstaffed,” Ms Blay told lawmakers.
Ms Blay disclosed that the company had just over 250 employees in 2016, highlighting the more than fivefold increase in headcount over the intervening period.
She noted that the company’s core mandate remains the maintenance of the gas processing plant and the delivery of gas for power generation. Any staffing additions beyond these technical functions, she argued, only deepen cost pressures.
“Ghana Gas’ core mandate or core work is to maintain the plant and ensure we have gas to power. So one of the cost drivers of Ghana Gas is exactly that,” she added.
Balancing Social Impact with Operational Efficiency
While acknowledging the company’s significant contributions through its corporate social responsibility (CSR) activities, Blay was unequivocal in stating that operational efficiency must now take priority.
“Now, I’m sure you also know that Ghana Gas has done a lot of corporate social responsibility,” she said, “but we must also streamline internal operations.”
The revelation comes at a time when several state-owned enterprises are under pressure to justify their cost structures and improve operational performance as part of broader fiscal consolidation efforts.
Industry observers suggest that reducing excess staffing and aligning personnel numbers with strategic technical needs could be critical to enhancing Ghana Gas’s long-term financial sustainability.
The Energy Committee is expected to assess the implications of Ms Blay’s testimony as part of ongoing parliamentary oversight into the performance of the energy sector’s key institutions.
