Ghana’s domestic petroleum revenue took a significant hit in the second half of 2024, plummeting 62.63% to US$517 million from US$840.77 million in the first half. This decline is particularly noteworthy, given that the country’s total annual petroleum revenue reached an all-time high of US$1.3 trillion in 2024, marking the highest earnings since oil production began in 2011.
The Bank of Ghana’s Petroleum Funds Report attributed the revenue decline to various factors, including reduced oil production and lower corporate tax payments. Despite this, the report highlighted key revenue sources, such as US$369 million from crude oil liftings between July and October, and US$144 million in corporate taxes from oil sector companies.
The Ghana Petroleum Funds received US$454 million, with US$136.2 million allocated to the Ghana Heritage Fund (GHF) and US$317.8 million to the Ghana Stabilisation Fund. These funds aim to preserve wealth for future generations and reduce the impact of oil price volatility, respectively.
However, the decline in oil production has raised concerns about the sustainability of Ghana’s oil sector. The Public Interest and Accountability Committee (PIAC) has urged the government to prioritize reversing production declines through increased investment in exploration data and regulatory reforms to attract fresh capital into the sector.
As Ghana navigates the challenges of its oil sector, it is essential to address the decline in production and ensure the long-term sustainability of the industry.
Ruth Abla ADJORLOLO
