Sharp drop in GNPC revenue raises alarm as PIAC flags $561m Exploco discrepancy
The Chairman of the Public Interest and Accountability Committee (PIAC), Richard Ellimah, has raised serious concerns over a steep decline in revenues to the Ghana National Petroleum Corporation (GNPC), warning that the trend could have far-reaching implications for Ghana’s petroleum sector and overall economic stability.During a presentation of highlights of the 2025 PIAC Annual Report at the launch of the 2025 PIAC Annual Report, Mr. Ellimah disclosed that GNPC received $107.8 million in petroleum revenue in 2025, representing a significant 61.5 percent drop from the $280.5 million recorded in 2024.According to him, the sharp decline reflects ongoing challenges within the sector, including reduced production levels and changes in allocation formulas that have affected GNPC’s share of revenue.In addition to the fall in revenue, Mr. Ellimah noted that GNPC’s total expenditure also dropped considerably during the same period.
He explained that the reduction in spending aligns with declining inflows, as the corporation adjusts its operations to its reduced financial capacity.Despite this, he stressed that the downward trend in both revenue and expenditure remains a major concern, particularly given GNPC’s critical role in managing Ghana’s upstream petroleum interests and supporting sector growth.
A key highlight of Mr. Ellimah’s presentation was the issue involving GNPC’s subsidiary, Exploco, which he said has persistently failed to account for substantial petroleum revenues.He revealed that between 2022 and 2024, Exploco accrued a total of $561 million in petroleum revenue but has yet to transfer these funds into the Petroleum Holding Fund (PHF), as required under Ghana’s petroleum revenue laws.According to the PIAC Chair, the matter has been the subject of repeated engagements between PIAC and GNPC, but no resolution has been reached.“We have had several back-and-forth discussions on this issue, but our position remains unchanged,”
Mr. Ellimah stated. “The $561 million collected by Exploco belongs to the people of Ghana and must be deposited into the Petroleum Holding Fund.”Mr. Ellimah also questioned the legal basis for government’s allocation of petroleum funds to the Ghana Infrastructure Investment Fund (GIIF), following its removal from the Petroleum Revenue Management Act (PRMA).“We made this recommendation because when the law was amended, GIIF was taken out, yet monies are still being given to it. We do not know the legal basis for that,” he said.
He therefore recommended that GIIF be reinstated under the PRMA to ensure that future disbursements are backed by law and free from legal risk.The PIAC Chair further emphasized the need for full disclosure of project details under petroleum-funded initiatives. He noted that although government has announced major infrastructure projects and contract allocations, key details remain unclear.“We hear figures and project breakdowns, but we do not have the full details. Publishing this information will enhance transparency and support effective monitoring,” he stated.On investment strategy, Mr. Ellimah highlighted the benefits of channeling petroleum revenues into capital projects, citing GIIF’s $30 million investment between 2017 and 2025.
He argued that such an approach yields better returns compared to spreading funds thinly across smaller projects.Providing an update on Ghana’s petroleum funds, he disclosed that the Ghana Heritage Fund currently holds $1.3 billion, representing a 9.3 percent increase from 2024, and assured that the fund remains secure.However, the Ghana Stabilization Fund declined to $174.98 million, down by 11.1 percent due to significant withdrawals.He further revealed that the current cap of $100 million on the Stabilization Fund does not comply with the legal formula outlined in LI 2381, which should have allowed for a cap of $584.2 million.“In effect, both past and present Finance Ministers have breached the regulations by applying a lower cap than required,” he stated, urging strict compliance with the law.
Mr. Ellimah also highlighted financial challenges facing the Ghana National Gas Company (GNGC), which currently owes GNPC about $620 million. He recommended the introduction of a time-bound debt repayment framework, alongside reforms in gas pricing policies to eliminate distortions and prevent revenue leakages.Additionally, he called on the Ministry of Energy to clarify the policy framework governing industrial gas pricing, noting persistent inconsistencies despite previous reforms.On oversight activities, Mr. Ellimah revealed that PIAC inspected only eight petroleum-funded projects in 2025—just 11.1 percent of planned inspections—due to funding constraints.
Looking ahead, he projected that Ghana’s petroleum revenue could rise to $985 million in 2026, up from $770 million in 2025, supported by a modest recovery in global oil prices.He concluded by urging the government to implement comprehensive reforms, including attracting new investments into the oil sector, improving regulatory frameworks, and ensuring strict compliance with existing laws.Meanwhile, the Executive Director of CDD Ghana, Henry Kwasi Prempeh, also called for stronger accountability and an expansion of PIAC’s mandate.
He described PIAC as a groundbreaking civil society-driven watchdog that has significantly enhanced transparency in Ghana’s petroleum sector. However, he expressed concern that despite active public discourse, accountability remains weak.Prof. Prempeh urged Parliament to debate and act on PIAC’s reports and proposed extending the committee’s oversight beyond oil and gas to include other natural resources such as gold and critical minerals.
