Ghana’s problem is bad leadership - Okudzeto Ablakwa on economic crisis

Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa, has attributed Ghana's economic crisis among other woes to bad leadership.

According to him, the Akufo-Addo-led government in 2022 recorded an 82.4 per cent increment in petroleum revenue, yet, the local economy is in shambles.

This, 82.4 percent increment recorded in a year, he said was historic.

He, however, stated that Ghana's problem isn't about poor revenue mobilization but "bad and wasteful leadership manifested classically by the creation of the world's most expensive cathedral hole at US$58.1million and squandering millions in a needless, witch-hunt Assin North by election."

In a tweet sighted by GhanaWeb, the lawmaker said, "PIAC reports that Prez Akufo-Addo’s govt in 2022 received a historic high single year revenue from Ghana’s oil production valued at US$1.43billion."

"Even under the current IMF bailout, Ghana will not receive US$1.43billion in a single year. Ghana’s problem is bad leadership," he added.

The 2022 Public Interest Accountability Committee (PIAC) Annual Report released on April 20, 2022, showed that Ghana recorded a total petroleum revenue of US$1.43 billion in 2022, representing an 82.4 per cent increase of US$783.3 million achieved in 2021.

The 2022 revenue figure, the highest for a single year since the inception of petroleum production, was realised from Carried Participating Interest (CAPI), which amounted to $733.8 million, Corporate Income Tax (CIT) of US$388.9 million, Income on Petroleum Holding Fund that generated US$2.4 million and Surface Rental earnings of US$687,759.

The country has so far cumulatively earned US$ 8.79 billion between 2011 and 2022 from 560,194,571(barrels) bbls oil produced between 2010 to 2022.

The report attributed the increased revenues to favourable international crude oil prices which were higher than estimated prices.

Meanwhile, government on July 1, 2022, announced its decision to engage the International Monetary Fund (IMF) for a $3 billion financial bailout programme.

Subsequently, a team from the IMF arrived in the country from July 6 to July 13, 2022, to engage Ghanaian authorities for a possible economic support programme.

A staff-level agreement between the Government of Ghana and the IMF was reached in December 2022.

On May 17, 2023, IMF's executive board approved Ghana's $3 billion loan facility.

The IMF programme, according to the government is aimed at restoring macroeconomic stability and safeguarding debt sustainability among many others.

Read Okudzeto Ablakwa's tweet below;

PIAC reports that Prez Akufo-Addo’s govt in 2022 received a historic high single year revenue from Ghana’s oil production valued at US$1.43billion.

Even under the current IMF bailout, Ghana will not receive US$1.43billion in a single year.

Ghana’s problem is bad leadership. pic.twitter.com/FIXwau1avk

— Sam Okudzeto Ablakwa (@S_OkudzetoAblak) July 2, 2023