Tag: Ministries

  • Mahama’s reduction of ministries to 23 amid calls for efficiency, cost-cutting

    Mahama’s reduction of ministries to 23 amid calls for efficiency, cost-cutting

    1. Ghana’s new President has reduced the number of government ministries to 23 from the previous 30 in line with his campaign promises.

    2. When it comes to clustering subsectors to create ministries, every wise person you meet would have different opinions.

    3. In the 2000s, the Kufuor government decided that “youth and sports” belong with “education”. The Mills government disagreed. But the latter government felt that “works and housing” somehow fit well with “water resources”. In all this clustering business, no government ever bothers to detail its thoughts as to justification. It is just what it is.

    4. I too can have an opinion without explanation, I guess. Looking at the new list, I might argue that “water resources” fit best with “land and natural resources” due to similar concessioning and control issues. And that the same ministry should handle “environment”. “Innovations”, nowadays, fit best, in my modest view, with “Science and Technology”.  I might question why “agribusiness” is being pulled out of Agriculture and ask whether “pharma business” too doesn’t deserve to be pulled out of “health” if we want to go on that tangent. Etc. I doubt anyone cares.

    5. Because, frankly, the usual concern about “number of ministers” is primarily about optics and symbolism. The people just don’t like seeing Presidents appoint a large number of ministers because it “feels” and “looks” quite “obscene”.

    6. Cutting down the number of ministries and ministers is thus an exercise in “reading the sentiments” of the public, and in being “responsive”, and not about lean and efficient government reforms per se. Being a “listening government” can have its own rewards separate from efficiency gains.

    7. To actually move in the direction of government efficiency, you must ask whether the thousands of workers in collapsed ministries would leave the government payroll or would simply be redistributed. How come we never touch the actual agencies where 98% of public workers and government business reside? Ministries are merely the tip of the iceberg. Agencies like the Police, Ghana Educational Service, and Ghana Revenue Authority are far heftier. State-owned enterprises like GNPC and ECG matter in every respect of spending efficiency than 60% of ministries.

    8. Would there be less spending on bureaucracy across the government as a whole following the reduction in the number of ministries? Where are the financial numbers to prove this? If you went back in history and compared spending on “office of government machinery” before and after “listening governments” cut down on the numbers of ministers, you might be surprised to see that the expense tends to increase year on year regardless.

    9. Furthermore, ministries are very varied. There are some like the Ministry of Chieftaincy and Religious Affairs that received on average less than $5 million a year as its entire budget. The funny Ministry of Parliamentary Affairs gets barely $600k a year. Frankly, ministries like that and the one for “business development” won’t be missed by anyone. They look like nuisances. On that score alone, citizens like to see them axed. But their total burden on the exchequer is puny.

    10. Then there are the giant ministries. Health, education, Roads & Highways, and the Interior. Education gets a cool $2 billion a year, more than 20% of the total government budget in most years. In fact, in 2024, the budget of the Ghanaian ministry of education is twice that of the Nigerian federal ministry of education. Even if you add all public spending on education in Nigeria up, Ghana’s ministry still spends more. It is a true behemoth. The Health Ministry gets a billion dollars. If you really want to make major savings in government spending, you could introduce reforms in health and education that would eclipse the savings made from abolishing 5 ministries. And, here I am talking about truly ABOLISHING. Like, man, sacking workers and auctioning V8s. Not the Ghana-style ministerial collapses in which everything remains as before except the few titles dropped.

    11. Anyway, the issue of how to save money across the government is a very broad and multifaceted one. The biggest area is actually in debt management. Then capital expenditure. And finally procurement related to general government operations. Only then does one even get to payroll issues. Ministerial perks should be on the list somewhere, for sure, perhaps on page 17 of the memo, in between stationery and guest house management. Fuel coupons, useless workshops, and travel imprest are all certainly higher up.

    12. In short, the issues plenty. And Mr. President has only 4 years. So, the work dey. Serious! But God too dey.

    Author: Bright Simons is a Ghanaian social innovator, entrepreneur, writer, social and political commentator. He is the vice-president, in charge of research at IMANI Africa.

    DISCLAIMER: TIGPost.co will not be liable for any inaccuracies contained in this article. The views expressed in the article are solely those of the author’s, and do not reflect those of The Independent Ghana.

  • Mahama reduces number of Ministries from 30 to 23

    Mahama reduces number of Ministries from 30 to 23

    President John Dramani Mahama has reduced the number of ministries under his administration from 30 to 23 through an Executive Instrument, aiming to streamline governance and enhance efficiency across various sectors.

    The decision, made under the authority granted by section 11(3) of the Civil Service Act, 1993 (P.N.D.C.L. 327), was formalized on January 9.

    The newly established ministries include: Ministry of Finance; Ministry of Health; Ministry of the Interior; Ministry of Defence; Ministry of Education; Ministry of Energy and Green Transition; Ministry of Transport; Ministry of Sports and Recreation; Office of the Attorney-General and Ministry of Justice; Ministry of Lands and Natural Resources; Ministry of Local Government, Chieftaincy and Religious Affairs; Ministry of Foreign Affairs; Ministry of Communication, Digital Technology and Innovations.

    The others are Ministry of Environment, Science and Technology; Ministry of Youth Development and Empowerment; Ministry of Works, Housing and Water Resources; Ministry of Gender, Children and Social Protection; Ministry of Tourism, Culture and Creative Arts; Ministry of Labour, Jobs and Employment; Ministry of Food and Agriculture; Ministry of Fisheries and Aquaculture; and Ministry of Trade, Agribusiness and Industry.

    The reduction in ministries forms part of the government’s intervention to reduce government expenditure. Several ministries have been merged whereas the National Security Ministry, Railway Development Ministry and Ministry of Information have been collapsed.

    The Civil Service (Ministries) Instrument, 2021 (E.I. 12) has been officially revoked as part of this restructuring.

    https://twitter.com/joyce_bawah/status/1878008611894337987

  • IMF bailout: By December 2023, all ministries’ and departments’ accounts must be transferred to a single treasury

    IMF bailout: By December 2023, all ministries’ and departments’ accounts must be transferred to a single treasury

    All accounts of Ministries, Departments, Agencies, and Statutory Funds are to be transferred to a single Treasury Account as part of Ghana’s Economic Recovery Programme presented to the International Monetary Fund.

    This is to be done by the end of 2023.

    According to reports, the move is part of efforts to fully implement the Treasury Single Account programme.

    This is to merge all accounts of all government institutions into a single account at the Central Bank for proper management and monitoring.

    The move is also to reduce or address the issue of domestic borrowing which leads to a crowding out of the private sector.

    This plan was contained in Ghana’s Economic Programme (PC-PEC) sent to the IMF as part of expected treasury reforms that government will undertake under the 3-year programme.

    Ghana’s Public Financial Management Act 2016 stipulates for the establishment of a Single Treasury Account as a unified structure of government accounts that enables the consolidation of all amounts of money received by covered entities.

    Ghana is currently running an economic recovery programme with the IMF aimed at restoring macroeconomic stability among other problems.

    The programme is also to ensure the restructuring of Ghana’s high debts and push the country back to sustainable levels.
    After the reception of the first tranche of the $ 3 billion IMF loan, Ghana’s local currency has been upgraded from Ca to Caa3.

    The local currency has also seen some stability in the past few weeks.

  • NEDCo to begin revenue mobilisation exercise April 18

    NEDCo to begin revenue mobilisation exercise April 18

    The Northern Electricity Distribution Company Ltd (NEDCo) has announced that on Tuesday, 18th April, it will embark on a nationwide revenue mobilisation exercise to retrieve monies owed it.

    The exercise which will start on 18 April 2023 will cover all customers in arrears, including State-Owned Enterprises (SOEs), Ministries, Departments and Agencies (MDAs), Metropolitan, Municipal and District Assemblies (MMDAs).

    According to a statement issued by management, special security arrangements will be put in place to arrest and prosecute anyone who interferes with the exercise.

    It added that persons identified to have engaged in illegal connections or reconnections will equally be dealt with in accordance with the law.

    The statement also noted that recalcitrant customers who have refused to redeem their indebtedness to the Company after they have been served with demand notices will be arraigned before Court.

    They, therefore, urged customers in arrears to pay their bills immediately to avoid disconnection and payment of reconnection fees.

    The statement said the NEDCo’s Head Office and Area Offices will be closed temporarily to allow for the full engagement of all staff, including top management in this exercise but said their customer service centres, zonal offices and third-party vendors will remain open to attend to customers including reconnections.

  • Audacious ECG disconnects power to ‘mother’ Ministry, Energy Ministry

    Audacious ECG disconnects power to ‘mother’ Ministry, Energy Ministry

    Last Tuesday, the Electricity Company of Ghana paid a visit to the Ministry of Energy, cutting off electricity to the entire building for over half a day.

    Power was only restored after the mother ministry of the Electricity Company of Ghana (ECG) paid their outstanding payment in full.

    This will be the fate of many other Ministries, Departments and Agencies (MDAs) and State Owned Enterprises (SOEs) who owe ECG huge amounts of money, forcing the power retailer to embark on a massive revenue mobilization exercise beginning on Monday, March 20, 2023, to Thursday, April 20, 2023.

    The exercise is using almost all ECG staff from top management to junior officers to retrieve all the monies owed them.

    According to the Managing Director, Mr Samuel Dubik Mahama Esq, the company is owed over GHS 5 billion from the month of September 2022 to February 2023.

    Most of this debt resides with the SOEs and MDAs.

    The strategy, therefore, is to take these agencies by storm, from March 20, 2023, and those who refuse to settle their bill immediately will be meted the same punishment as the Ministry of Energy.

    Ahead of this exercise, Mr Dubik Mahama toured all the operational regions of ECG to sensitize the staff on how to go about the mobilization of the revenue, to respect the customer at all times.

    He also reminded the staff that ECG is a business and not a charity and everyone must start to behave as such.

    It is expected that at the end of the exercise, 100% of the debt would be recovered.

  • Ministers who fail to appear before the house will not get their budget estimates approved – Minority warns

    Minority Leader Haruna Iddrisu has vowed to oppose the approval of budget estimates if the minister of the sector does not appear in the house alone.

    According to him, some ministers have failed to show respect to the house, and there is a need to hold the government accountable.

    “When we get to the approval of budget estimates and ministers don’t appear in person in parliament by themselves, we will not support the approval of the budget allocations to those ministries.

    “Ministers must take this house very seriously, and only ministers appointed by the president to oversee the sectors of those ministries must rise from their seats to move motions to ask for budget allocations and approval by this house. Failure to do so will mean that we will stump down a number of those motions.

    “We will hold this government accountable, and we intend to strengthen oversight. It begins with this our decision. If ministers don’t appear in person to move motions for budget allocations, then they should expect the fiercest resistance from this side of the house,” he explained.

    Meanwhile, parliament has tasked the Ministry of Finance and other Ministries, Departments, and Agencies (MDAs) to submit their Heads of Estimates for consideration and approval by parliament on time.

  • TUC boss explains how hiring freeze will affect productivity and efficiency

    The Secretary General of the Trades Union Congress (TUC) Dr Yaw Baah has said the congress does not have details of the government’s plan to freeze hiring next year as stated in the 2023 budget statement.

    He said they do not know whether or not this forms part of the conditions the International Monetary Fund (IMF) is giving to Ghana.

    Again, he said, they are unable to tell whether this is a net freeze or total.

    Speaking in an interview with TV3’s Daniel Opoku on the sidelines of a post budget analyses forum held by the TUC in Accra on Monday November 28, Dr Yaw Baah said “we still don’t have the details of the IMF conditionality but you will not be wrong if you think this is part of IMF conditions. Since 1965 when Ghana Government started going to IMF, employment freeze has always been part, in the last one that ended, employment freeze was one but in that case it was net.

    “Net meant that if somebody retires you can replace the person. So the net freeze is what we need. But this one, we don’t know the details, whether it is the net freeze or total freeze.

    “If it is a net freeze then it is like the previous one but if it is a total freeze it is another ball game all together. There are 644,000 people on the single spine. Let us assume without admitting that about 5 per cent of them retire yearly.

    “If only five percent retire every year, we are talking now about over 30,000 people retiring and if the 30,000 people retire and they don’t replace them  it will affect service delivery. If you reduce numbers by over 30,000 and they are not replaced then your effectiveness in service delivery will be affected.”

    The Minister of Finance Ken Ofori-Atta announced in the 2023 budget a freeze on employment into the civil and public service.

    He also said there shall be no new government agencies established in 2023.

    He said these while presenting the budget in Parliament on Thursday November 23.

    Mr Ofori-Atta said as a first step toward expenditure rationalisation, government has approved a number of directives which takes effect from January, 2023.

    These are “All Ministries, Departments and Agencies (MDAs), Metropolitan, Municipal and District Assemblies (MMDAs) and State-Owned-Enterprises (SOEs) are directed to reduce fuel allocations to Political Appointees and heads of MDAs, MMDAs and SOEs by 50%. This directive applies to all methods of fuel allocation including coupons, electronic cards, chit system, and fuel depots. Accordingly, 50% of the previous years (2022) budget allocation for fuel shall be earmarked for official business pertaining to MDAs, MMDAs and SOEs;

    “A ban on the use of V8s/V6s or its equivalent except for cross country travel. All
    government vehicles would be registered with GV green number plates from
    January 2023; Limited budgetary allocation for the purchase of vehicles. For the avoidance of doubt, purchase of new vehicles shall be restricted to locally assembled vehicles;

    “Only essential official foreign travel across government including SOEs shall be
    allowed. No official foreign travel shall be allowed for board members.”

    The Finance Minister added “Accordingly, all government institutions should submit a travel plan for the year 2023 by mid-December of all expected travels to the Chief of Staff;  As far as possible, meetings and workshops should be done within the official environment or government facilities; Government sponsored external training and Staff Development activities at the Office of the President, Ministries and SOEs must be put on hold for the 2023 financial year; Reduction of expenditure on appointments including salary freezes together with suspension of certain allowances like housing, utilities and clothing, etc.;

    “A freeze on new tax waivers for foreign companies and review of tax exemptions for free zone, mining, oil and gas companies; A hiring freeze for civil and public servants, No new government agencies shall be established in 2023; There shall be no hampers for 2022;  There shall be no printing of diaries, notepads, calendars and other promotional, merchandise by MDAs, MMDAs and SOEs for 2024;  All non-critical project must be suspended for 2023 Financial year.”

  • Ghana committed to increasing renewable energy share – Akufo-Addo

    President Nana Addo Dankwa Akufo-Addo has assured the global community of Ghana’s full commitment to increasing the country’s share of renewable energy in the energy mix.

    Speaking at a High-Level Event on Sustainable Energy for All, organised by Bloomberg Philanthropies, on the sidelines of COP27 in Sharm el-Sheikh, Egypt, the Ghanaian leader stated that “we will continue to increase the share of renewable energy in our electricity generation mix, as well as explore the options of hydrogen gas and other clean energy sources to meet our energy needs”

    According to President Akufo-Addo, “Energy transition has become a global responsibility for us all, especially in view of the impact of climate change, and the global energy crisis brought forth by the Russian invasion of Ukraine.”

    With Ghana being a signatory to the Paris Agreement and other international conventions, which require the country to reduce her carbon dioxide emission levels, he indicated that it has become imperative for Ghana to develop plans and strategies toward the creation of a net-zero energy sector, whilst aggressively pursuing the nation’s economic development.

    “Our updated nationally determined contributions, under the Paris Agreement, affirm the country’s resolve to address the impacts of climate change and build a resilient economy for our people”, he stressed.

    President Akufo-Addo continued, “Ghana’s position on energy transition is to continue the responsible exploitation of our natural resources for our development and transition at our own pace. The government of Ghana is mindful of the actions of the developed countries in relation to the energy transition, and their effect on us.”

    To this end, he told the gathering that it has, thus, become necessary for the government of Ghana to develop an Energy Transition Framework that will guide the country, as the entire world moves towards realising net zero.

    The president also said that the government of Ghana, being mindful of the implications of such a framework and its implementation on the entire economy, directed the Committee to undertake extensive stakeholder consultations, in addition to expert input, to produce the National Energy Transition Framework to guide its transition to a net-zero economy by 2070 in a just and equitable manner, as well as minimise possible stranded assets and job losses in the oil and gas sector.

    The total cost of the transition is estimated at US$561.8 billion), the President added.

    Energy Transition

    President Akufo-Addo also addressed the High-Level Meeting on “Just Energy Transition”, where he indicated that Ghana has developed a National Energy Transition Framework to provide the vision and guidance for Ghana’s energy transition.

    In preparing this framework, the President stated that all existing policies were considered and the programmes that are being implemented towards achieving Ghana’s Nationally Determined Contributions.

    “Wide stakeholder consultations were held to ensure that the energy transition issues in various parts of the country were captured and addressed in the framework. These included organised and non-organised labour, market women, academia, Ministries, Departments and Agencies (MDAS), Metropolitan, Municipal and District Assemblies (MMDAs), Development Partners (DPs) and the international community,” he said.

    He explained that the Framework provides the optimal and sustainable pathway for fuel supply security, diversified energy mix and cost-efficient electricity generation, with an estimated generation tariff of less than US$4.5 cents per kilowatt hour to accelerate the socio-economic development of Ghana.

    “Ghana aims to achieve universal access by 2024. The Energy Transition Framework will meet the future electricity demand of 380 Terawatt-hours, with a corresponding installed capacity of 83 Giga-Watts. Ghana’s diversified energy mix will include 21 Gigawatts of renewable energy installed capacity, which will provide the opportunity to enjoy a greater share in the renewable energy carbon credit market,” he added.

    The president continued: “The transition will mitigate 200 million tons of carbon dioxide of Green House Gas emissions, minimising energy-related indoor air pollution and associated diseases. It is estimated that forty-eight thousand, two hundred and eighteen (48,218) premature deaths will be avoided annually due to the improvement in air quality, resulting from the impact of the transition.”

  • Ghana committed to increasing share of renewable energy – Akufo-Addo

    President Nana Addo Dankwa Akufo-Addo has assured the global community of Ghana’s full commitment to increasing the country’s share of renewable energy in the energy mix.

    Speaking at an event on Sustainable Energy for All, organised by Bloomberg Philanthropies, on the sidelines of COP27 in Sharm el-Sheikh, Egypt, President Akufo-Addo stated that, “we will continue to increase the share of renewable energy in our electricity generation mix, as well as explore the options of hydrogen gas and other clean energy sources to meet our energy needs”

    According to President Akufo-Addo, “Energy transition has become a global responsibility for us all, especially in view of the impact of climate change, and the global energy crisis brought forth by the Russian invasion of Ukraine.”

    With Ghana being a signatory to the Paris Agreement and other international conventions, which require the country to reduce her carbon dioxide emission levels, he indicated that it has become imperative for Ghana to develop plans and strategies toward the creation of a net-zero energy sector, whilst aggressively pursuing the nation’s economic development.

    “Our updated Nationally Determined Contributions, under the Paris Agreement, affirm the country’s resolve to address the impacts of climate change and build a resilient economy for our people”, he stressed.

    President Akufo-Addo continued, “Ghana’s position on energy transition is to continue the responsible exploitation of our natural resources for our development and transition at our own pace. The Government of Ghana is mindful of the actions of the developed countries in relation to energy transition, and their effect on us.”

    To this end, he told the gathering that it has thus, become necessary for the Government of Ghana to develop an Energy Transition Framework that will guide the country, as the entire world moves towards realizing net zero

    The President also said that the Government of Ghana, being mindful of the implications of such a framework and its implementation on the entire economy, directed the Committee to undertake extensive stakeholder consultations, in addition to expert input, to produce the National Energy Transition Framework to guide its transition to a net-zero economy by 2070 in a just and equitable manner, as well as minimise possible stranded assets and job losses in the oil and gas sector.

    The total cost of the transition is estimated at five hundred and sixty-one billion dollars (US$561.8 billion), the President added.

    Energy Transition

    President Akufo-Addo also addressed the High-Level Meeting on “Just Energy Transition”, where he indicated that Ghana has developed a National Energy Transition Framework to provide the vision and guidance for Ghana’s energy transition.

    In preparing this framework, the President stated that all existing policies were considered and the programmes that are being implemented towards achieving Ghana’s Nationally Determined Contributions.

    “Wide stakeholder consultations were held to ensure that the energy transition issues in various parts of the country were captured and addressed in the framework. These included organized and non-organized labour, market women, academia, Ministries, Departments and Agencies (MDAS), Metropolitan, Municipal and District Assemblies (MMDAs), Development Partners (DPs) and the international community,” he said.

    He explained that the Framework provides the optimal and sustainable pathway for fuel supply security, diversified energy mix and cost-efficient electricity generation, with an estimated generation tariff of less than US$4.5cents per kilowatt hour to accelerate the socio-economic development of Ghana.

    “Ghana aims to achieve universal access by 2024. The Energy Transition Framework will meet future electricity demand of 380 Terawatt-hours, with a corresponding installed capacity of 83 Giga-Watts. Ghana’s diversified energy mix will include 21 Gigawatts of renewable energy installed capacity, which will provide the opportunity to enjoy a greater share in the renewable energy carbon credit market,” he added.

    President continued, “the transition will mitigate 200 million tons of carbon dioxide of Green House Gas emissions, minimising energy-related indoor air pollution and associated diseases. It is estimated that forty-eight thousand, two hundred and eighteen (48,218) premature deaths will be avoided annually due to the improvement in air quality, resulting from the impact of the transition.”

    Source: Ghanaweb

  • Akufo-Addo presents Ghana’s framework on energy transition at COP27

    At a High-Level Event on Sustainable Energy for All hosted by Bloomberg Philanthropies in Sharm el-Sheikh, Egypt, on the eve of COP27, President Nana Addo Dankwa Akufo-Addo discussed Ghana’s framework for the energy transition.

    He said it has become essential for Ghana to develop plans and strategies toward the creation of a net-zero energy sector, while zealously pursuing the country’s economic development, given that the country is a signatory to the Paris Agreement and other international conventions that require the country to reduce its levels of carbon dioxide emissions.

    President Akufo-Addo also stated that “we will continue to increase the share of renewable energy in our electricity generation mix, as well as explore the options of hydrogen gas and other clean energy sources to meet our energy needs”

    According to President Akufo-Addo, “Energy transition has become a global responsibility for us all, especially in view of the impact of climate change, and the global energy crisis brought forth by the Russian invasion of Ukraine.”

    “Our updated Nationally Determined Contributions, under the Paris Agreement, affirm the country’s resolve to address the impacts of climate change and build a resilient economy for our people”, he stressed.

    President Akufo-Addo continued, “Ghana’s position on energy transition is to continue the responsible exploitation of our natural resources for our development and transition at our own pace. The Government of Ghana is mindful of the actions of the developed countries in relation to energy transition, and their effect on us.”

    To this end, he told the gathering that it has thus, become necessary for the Government of Ghana to develop an Energy Transition Framework that will guide the country, as the entire world moves towards realizing net zero status.

    The President also said that the Government of Ghana, being mindful of the implications of such a framework and its implementation on the entire economy, directed the Committee to undertake extensive stakeholder consultations, in addition to expert input, to produce the National Energy Transition Framework to guide its transition to a net-zero economy by 2070 in a just and equitable manner, as well as minimise possible stranded assets and job losses in the oil and gas sector.

    He added that the total cost of the transition is estimated at US$561.8 billion.

    Energy Transition

    President Akufo-Addo also addressed the High-Level Meeting on “Just Energy Transition”, where he indicated that Ghana has developed a National Energy Transition Framework to provide the vision and guidance for Ghana’s energy transition.

    In preparing this framework, the President stated that all existing policies were considered and the programmes that are being implemented towards achieving Ghana’s Nationally Determined Contributions.

    “Wide stakeholder consultations were held to ensure that the energy transition issues in various parts of the country were captured and addressed in the framework. These included organized and non-organized labour, market women, academia, Ministries, Departments and Agencies (MDAS), Metropolitan, Municipal and District Assemblies (MMDAs), Development Partners (DPs) and the international community,” he said.

    He explained that the Framework provides the optimal and sustainable pathway for fuel supply security, diversified energy mix and cost-efficient electricity generation, with an estimated generation tariff of less than US$4.5cents per kilowatt hour to accelerate the socio-economic development of Ghana.

    “Ghana aims to achieve universal access by 2024. The Energy Transition Framework will meet future electricity demand of 380 Terawatt-hours, with a corresponding installed capacity of 83 Giga-Watts. Ghana’s diversified energy mix will include 21 Gigawatts of renewable energy installed capacity, which will provide the opportunity to enjoy a greater share in the renewable energy carbon credit market,” he added.

    President continued, “the transition will mitigate 200 million tons of carbon dioxide of Green House Gas emissions, minimising energy-related indoor air pollution and associated diseases. It is estimated that forty-eight thousand, two hundred and eighteen (48,218) premature deaths will be avoided annually due to the improvement in air quality, resulting from the impact of the transition.”

  • NEDCo loses 45% of power to theft in the north

    In the Northern Operational Area – Northern and Savannah Regions, as well as some areas of the Oti Region, the Northern Electricity Distribution Company Limited (NEDCo) loses up to 45 percent of the monthly power it sells to clients. This loss is primarily the result of power theft.

    About GH24 million is the company’s monthly earnings from the Northern Area, but it could have been more if not for power theft.

    Additionally, it indicates that more than GH10 million is lost each month, totaling more than GH120 million annually.

    Losses from its other operational regions, such as Techiman, Sunyani, and the Upper East, Upper West, and North-East Region, are not included in this.

    The Public Utilities Regulatory Commission (PURC), the utilities regulator, allows for a lost margin of 22 percent for power utilities. NEDCo ended 2021 with total losses at 27 percent.

    Manager, Technical Audit of NEDCo, Ing. John Yamoah, who made the revelations during a media workshop, added that losses in Tamale stand out among the rest at 48 percent.

    NEDCo, which recorded GH¢884million in total revenue in 2021, lamented that the huge monthly losses make it difficult to invest into new equipment and infrastructure needed to ensure quality and reliable electricity supply within its jurisdiction.

    Earlier this year, NEDCo, a subsidiary of the Volta River Authority, in its justification for improved tariffs to utilities regulator, submitted that apart from inadequate revenue from tariffs, it was confronted by high losses due to power theft, faulty metres and unbilled customers, which it said was particularly high in the Northern Area, comprising Northern and Savannah Regions and some parts of Oti Region.

    Meanwhile, non-payment by Ministries, Departments and Agencies (MDAs), standing at GH¢1billion at the end of 2021, and lack of metering for streetlighting and others, were among the challenges captured in its proposal to the regulator.

    To ensure supply of quality and reliable electricity, it is estimated that NEDCo requires GH¢8billion, approximately US$844million to modernise its infrastructure.

    Ing. Yamoah said these losses make it difficult for the company to effectively deliver on its mandate.

    NEDCo’s Managing Director, Osmani Ayuba, said he was deeply worried about power theft and its implications for his outfit and reliable electricity supply.

    “Power is so critical that I don’t need to talk much about it. Without power, we cannot do anything,” he said, adding: “But we do not get the power for free. We actually buy from VRA, so we need money to continue to buy the power; we need money to buy the metres for you; we need money to buy poles to replace the broken ones; we need money to buy the transformers that have blown; and we need money to work on the network.

    “Unfortunately, we are in an environment where power theft is very high.”

    In the recent past, NEDCo’s attempt to retrieve revenue due it or curb power theft or illegal power connection has resulted in deadly clashes with consumers.

    “Our staff suffer a lot in the field of work; they go to check on illegal connections and end up being physically assaulted by offenders. So it’s really strenuous for us to work. We need to have a very nice environment for us to do our legitimate job and continue to provide you with the quality power supply that you need to do your businesses and handle other things.”