The Public Interest and Accountability Committee (PIAC) has cautioned that the Ghana National Petroleum Corporation (GNPC) could encounter financial difficulties after 2026 if it loses government backing, as required by the Petroleum Revenue Management Act (PRMA).
The PRMA specifies that GNPC will cease to receive funding from the Petroleum Holding Fund (PHF) after 15 years from the commencement of commercial oil production.
PIAC stressed the necessity for GNPC to achieve financial independence, urging the government to avoid imposing further financial strains on the corporation.
In its report titled “The Role of GNPC in the Upstream Petroleum Industry: Challenges and Prospects,” PIAC suggested that GNPC collaborate with various stakeholders to align expectations and secure support. Additionally, it recommended revising GNPC’s strategy to adapt to the post-2026 financial landscape.
PIAC underscored GNPC’s substantial financial obligations, which include guarantees and receivables amounting to $1.14 billion as of 2022. These commitments involve payments made on behalf of the government, state-owned enterprises, and outstanding debts linked to infrastructure projects and gas supply to the Ghana National Gas Limited Company.
Furthermore, PIAC voiced concerns arising from public feedback regarding apprehensions about political interference in GNPC’s activities, resulting in quasi-fiscal spending and advances to other government entities.