PIAC Warns of Financial Risks for GNPC as Government Debt Nears $1 Billion
The Public Interest and Accountability Committee (PIAC) has raised concerns over the financial viability of the Ghana National Petroleum Corporation (GNPC) ahead of its planned weaning off from state funding by 2026, in line with the Petroleum Revenue Management Act.
PIAC’s latest report warns that GNPC is grappling with substantial financial pressure, as the corporation is owed nearly $1 billion by government entities, including the Volta River Authority (VRA), Karpowership, the Electricity Company of Ghana (ECG), and the Tema Oil Refinery.
These debts are largely the result of GNPC being frequently called upon to pre-finance or guarantee loans for state-owned enterprises, a practice which PIAC claims is threatening the corporation’s financial health.
Mark Agyemang, Technical Manager at PIAC, highlighted that these obligations, imposed by the government, are creating a precarious situation for GNPC as it approaches its transition to full financial independence.
“The dichotomy here is that the state expects GNPC to fund other state-owned entities while being owed significant amounts by the same government,” Mr Agyemang remarked, describing the situation as a “financial headache” for the national oil company.
Agyemang further called for a review of P.N.D.C.L 64, the law establishing GNPC, arguing that a more diversified governance structure—one that includes independent appointees not selected by the government—could help the corporation resist unsustainable financial demands from the state and safeguard its long-term viability.
