The country’s energy sector debt has surged past US$3billion, rising from the approximately US$2billion recorded under the previous administration of President John Dramani Mahama, according to Minister of Energy-designate, John Abdulai Jinapor.

During his vetting before parliament’s Appointments Committee, Mr. Jinapor cited a document titled ‘Summary of Energy Sector Debt and Lenders’ which detailed the debt trajectory.

He noted that in August 2017, ESLA PLC conducted a full audit of the energy sector debt, revealing a total liability of US$2.1billion – validated as the debt level when the National Democratic Congress (NDC) government exited office in 2017.

Mr. Jinapor disputed claims suggesting the debt stood at US$5billion at the time, explaining that reconciliations during the 2024 transition of power placed the debt stock at US$2.5billion as of September 30, 2024.

He said data from the Ministry of Energy, the Energy Commission and the Electricity Company of Ghana (ECG) confirm the current figure at just over US$3billion.

“The Energy Sector Levies Act (ESLA) generated approximately GH₵45billion, which has been used to clear part of the debt including interest payments amounting to GH₵9.4billion,” Mr. Jinapor said.

He attributed the rising debt primarily to unpaid bills for electricity that has been supplied and consumed.

“If you take most of our debt, a chunk of it is power sold, delivered and revenue not collected,” he emphasised.

The ballooning energy sector debt has long been a significant financial challenge, placing immense pressure on state utilities and posing a threat to the country’s economic stability.

To address this issue, Mr. Jinapor outlined his vision to prioritise revenue collection and improve operational efficiency in the energy sector.

He also noted the need for private-sector participation, particularly in areas such as billing and revenue collection for the ECG – a process he had previously spearheaded.

“We need private-sector participation at the distribution level,” he stated.

He argued that this is essential to strengthen efficiency, enhance collection rates and reduce revenue losses in the energy sector.



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