Ghana’s Government to Settle $1.1 Billion Debt to ENI Amid Energy Sector Struggles

The government of Ghana is set to pay $1.1 billion in 2025 to ENI, an energy company, to settle outstanding debts for gas supply. These payments will cover monthly invoices, letter of credit replenishments, and overdue arrears. The financial commitment was revealed during a meeting between key government officials, including Finance Minister Dr. Cassiel Ato Forson, Energy Minister John Abdulai Jinapor, and ENI representatives. Despite challenges, the government emphasized its dedication to ensuring a steady gas supply for the country.

Dr. Forson highlighted that the debt burden partially resulted from the previous administration’s failure to meet its obligations, leaving the current government to clear the arrears while continuing to make necessary payments. Ghana’s monthly energy costs are significantly high, with 2.5 billion cedis in expenditures, yet the Energy Commission only collects 1.3 billion cedis, leading to a monthly deficit of 1.2 billion cedis. This financial gap exacerbates the strain on the sector.

In response to the growing crisis, the Ghana National Petroleum Corporation (GNPC), along with the Energy and Finance Ministries, will conduct a comprehensive review of the energy sector. This review aims to assess liabilities and find a sustainable path forward to improve the energy sector’s financial stability and future sustainability. The government is committed to resolving the current challenges.

Despite the frustration surrounding inherited debts, Dr. Forson reassured Ghanaians that the government is dedicated to stabilizing the energy sector, clearing arrears, and ensuring a reliable energy supply. He acknowledged the burden of past mistakes but emphasized that the government would not shy away from fulfilling its responsibilities. Ghanaians are urged to recognize that they are collectively bearing the cost of past financial missteps.

source: citi newsroom