Gov’t clears $1.47bn legacy energy sector debt

• Posted on January 12, 2026January 12, 2026
• by Nana Kwesi Coomson
• Comment

The Government of Ghana has cleared legacy energy sector debts amounting to approximately $1.47 billion as at December 31, 2025, according to a statement from the Ministry of Finance. 

The payments were undertaken within the first year of the Mahama Administration and addressed longstanding arrears that had pushed the energy sector to the brink. 

Central to the intervention was the full repayment of the World Bank Partial Risk Guarantee (PRG), which had been depleted due to persistent non-payment under the previous administration. 

According to the statement issued on Monday, January 12, by the Finance Ministry, government repaid US$597.15 million, inclusive of interest, thereby fully restoring the guarantee facility.

In addition, all outstanding gas invoices owed to ENI and Vitol for electricity generation were settled. 

These payments totalled about US$480 million as at December 31, 2025, ensuring Ghana is fully up to date on its obligations to the Sankofa Gas Project partners.

Settling Arrears with Gas Partners and IPPs

The US$1.470 billion total expenditure for the 2025 fiscal year covers several critical areas of the energy value chain including:

• Sankofa Partners (ENI and Vitol): The government settled approximately US$480 million in outstanding gas invoices, bringing Ghana current on its obligations for electricity generation gas supply.
• Independent Power Producers (IPPs): Approximately US$393 million was paid toward legacy IPP debts in 2025 alone.
• Strategic Roadmaps: New agreements have been reached with Tullow Oil and Jubilee Field partners to ensure a sustainable roadmap for future gas off-take payments.

The Ministry of Finance noted that prudent fiscal management and adequate budgetary provisions have been put in place to sustain timely payments going forward.