Business News of Tuesday, 28 April 2026

Source: www.ghanaweb.com

Government owes over $700m in power sector debts – Minority claims

Collins Adomako-Mensah is the Deputy Ranking Member of Energy committee Collins Adomako-Mensah is the Deputy Ranking Member of Energy committee

The Minority in Parliament has stated that behind the recurring power outages lies a deeper financial strain stemming from the state’s indebtedness to the power sector.

Speaking at a press conference on Tuesday, April 28, 2027, the Deputy Ranking Member on Parliament’s Energy Committee, Collins Adomako-Mensah, revealed that the government owes more than $700 million to Independent Power Producers (IPPs) and fuel suppliers, debts he says are worsening the sector's challenges.

“We also know that the problems of the sector are not only technical; they are financial,” he stated.

For many Ghanaians already dealing with unreliable electricity, the revelation adds another layer of concern, suggesting that the issues go beyond faulty infrastructure or isolated incidents and point to longstanding financial pressures.

According to Adomako-Mensah, available data contradicts earlier assurances by the Finance Minister, Cassiel Ato Forson, that payments to IPPs had been settled.

“The data available to us is that the government owes IPPs over $500 million and over $200 million to companies that supplied fuel for power generation,” he disclosed.

The Minority argues that such outstanding debts could have serious implications for power generation, as suppliers may struggle to maintain operations without timely payments.

They also questioned previous claims about improved financial performance within the Electricity Company of Ghana (ECG) and the broader energy sector, suggesting that the reality on the ground may be different.

As part of their demands, the Minority is calling for greater transparency, especially regarding the Energy Sector Levy, commonly known as the “Dumsor levy”, which was introduced to help stabilise the sector.

“We are calling on the Minister for Energy and the Minister for Finance to, within the shortest possible time, lay before Parliament and publish a full, detailed and independently verified report on the one Ghana cedi Dumsor levy, covering all collections made to date, all disbursements, and the outcomes of every expenditure,” he stated.

NA/VPO