Government to Clear $1.1 Billion Debt Owed ENI Amid Energy Sector Reforms
Minister for Finance, Dr. Cassiel Ato Forson, has raised concerns over the country’s mounting financial obligations in the energy sector, revealing that the government will need to allocate a staggering $1.1 billion in 2025 to settle payments owed to ENI alone.
Speaking on the issue, Dr. Forson attributed the crisis to years of neglect, stating that past administrations failed to address the sector’s mounting debts, leading to a broken system in urgent need of reform.
“For far too long, critical obligations were pushed aside, leaving us with a broken system that now demands urgent and painful corrections. The previous government failed to address these mounting debts, kicking the can down the road while the liabilities piled up,” he stated.
Dr. Forson revealed that Ghana’s monthly energy costs currently stand at GHS 2.5 billion, with fuel and power generation alone consuming GHS 1.9 billion. However, the Electricity Company of Ghana (ECG) collects only GHS 1.3 billion, leaving a monthly deficit of GHS 1.2 billion.
During a recent meeting with ENI officials, the Finance Minister acknowledged the financial strain on the government, emphasizing that funds which could have been directed towards development, healthcare, and education must now be used to cover longstanding energy sector commitments.
“It is frustrating that we are in this position, but we will not relinquish our responsibilities. We are committed to stabilizing the sector, clearing the debts we inherited, and ensuring Ghana’s energy future is no longer crippled by poor decisions of the past,” he assured.
The government is now faced with the challenge of implementing urgent financial and policy interventions to address the structural inefficiencies within the energy sector and prevent further accumulation of debt.
