GOVT’S OUTSTANDING DEBT TO GNPC ESCALATES TO $1.25 BILLION

Government indebtedness to the Ghana National Petroleum Corporation (GNPC) has increased to $1.25 billion as of December 2024.

The Public Interest and Accountability Committee (PIAC) revealed in its latest report that anxieties are mounting over the state-owned energy company’s financial health.

PIAC, in its 2021 annual report, revealed that GNPC was unable to recover $126.68 million in budgeted revenue from loans and guarantees – part of a cumulative $318.09 million owed by the government and its agencies since 2011.

PIAC emphasized that GNPC must ramp up efforts to reclaim overdue payments, warning that delays could jeopardize critical programs.

It also advised the Corporation to discontinue the issuance of new loans and guarantees until significant repayments were made.

Despite this, PIAC’s latest report shows that government indebtedness to GNPC has surged to $1.25 billion as of the end of December 2024.

It is driven by additional disbursements and guarantees made by the Corporation.

The Committee has expressed strong disapproval of the government’s continued reliance on GNPC for financing, and has once again called for urgent repayment of outstanding debts to preserve the Corporation’s financial viability.