Accra, Ghana – The Public Interest and Accountability Committee (PIAC) has revealed that Ghana’s finance ministers unlawfully set the cap for the Ghana Stabilisation Fund at $100 million for five years, significantly under the legally mandated $584.22 million for 2025. This breach of the Petroleum Revenue Management Act (PRMA) occurred between 2021 and 2025, according to PIAC’s findings presented at a media event over the weekend.
Context: The Ghana Stabilisation Fund and PRMA
The Ghana Stabilisation Fund is a crucial component of the country’s petroleum revenue management framework. Established under the PRMA, its purpose is to cushion the economy and manage the volatility of oil revenues. The PRMA dictates specific rules for calculating and setting caps on these funds to ensure prudent financial management and prevent excessive withdrawals.
The Discrepancy in the Stabilization Cap
Richard Ellimah, Chair of PIAC, explained at the presentation of PIAC’s 2025 Annual Report that the law requires the cap to be calculated based on the average of expected oil revenues for three consecutive years. For 2025, this calculation, using expected oil money for 2024, 2025, and 2026, amounts to an average of $584.22 million. However, finance ministers reportedly set and Parliament approved a cap of only $100 million during the period in question.
Ellimah stated that both the finance ministers and Parliament acted unlawfully by establishing and approving this lower cap. He urged the current Finance Minister to adhere to the correct figure and called on Parliament to ensure legal compliance when approving future budgets.
Concerns Over the Big Push Programme and GIIF
PIAC also raised concerns regarding the allocation of funds for the ‘Big Push’ programme. The committee advocates for clear legal provisions on how money designated for the Big Push can be transferred from the Annual Budget Funding Amount (ABFA) to the Ghana Infrastructure Investment Fund (GIIF).
To illustrate the potential of GIIF, Ellimah highlighted its investment in the Accra International Airport. Between 2017 and 2025, GIIF invested $30 million and reportedly earned $17.9 million in interest and fees, representing nearly 60% of the initial investment.
PIAC recommends integrating GIIF back under the PRMA. This would enable the fund to receive ABFA allocations for viable commercial projects, thereby enhancing its capacity to drive infrastructure development.
Frequent Amendments to the PRMA
The PRMA, enacted in 2011, has undergone numerous amendments. Ellimah noted that a comprehensive review, initiated in 2018-2019 with public input, stalled between 2020 and 2024. Instead, Parliament passed two amendments in 2025 alone.
The first amendment in March restricted the ABFA’s use exclusively to infrastructure under the Big Push programme. It also removed PIAC’s guaranteed funding from the ABFA and reduced the Ghana National Petroleum Corporation’s share from 30% to 15%. A subsequent amendment in December broadened the investment scope for the Ghana Petroleum Fund. The Finance Minister reportedly explained this was to facilitate the use of funds from the Ghana Heritage Fund for energy projects and the 24-Hour Economy Programme.
Forward-Looking Risks and Recommendations
Ellimah warned of future uncertainties, particularly concerning the Ghana Heritage Fund. He pointed out that 2026 marks 15 years since the PRMA’s inception, the earliest point at which Parliament can review the rule limiting transfers from the Heritage Fund. The current law permits withdrawals of only some interest, not the principal, creating ambiguity about the exact withdrawal amounts.
PIAC strongly advocates for a single, comprehensive review of the PRMA, rather than piecemeal changes. Such a review, they argue, should establish clear criteria for project selection, improve expenditure management, and mandate independent performance audits.
Further recommendations from PIAC include the government publishing detailed project information, adhering to the 5% allocation for the District Assemblies Common Fund, reviving the 2019 PRMA review process, and developing a long-term national development plan approved by Parliament.
Implications and Future Watch
The PIAC report raises significant questions about transparency, accountability, and adherence to the law in managing Ghana’s oil revenues. The alleged breach of the PRMA regarding the stabilization fund cap could have implications for fiscal stability and the government’s ability to manage economic shocks. The frequent and sometimes abrupt amendments to the PRMA also signal potential instability in the regulatory framework governing these critical funds.
Stakeholders will be watching closely to see if the government addresses PIAC’s concerns regarding the stabilization fund cap and implements the recommended comprehensive review of the PRMA. The clarity and stability of these regulations are vital for attracting investment and ensuring that Ghana’s natural resource wealth benefits its citizens effectively. Future developments will likely focus on parliamentary oversight, the government’s response to PIAC’s recommendations, and the potential impact on Ghana’s economic management and development plans.
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