DVLA cuts $155.4 million roadworthiness deal to GH¢2 million

The Driver and Vehicle Licensing Authority (DVLA) says it has reduced the cost of a roadworthiness certificate agreement from US$155.4 million over three years to GH¢2 million for a new three-year period.

The sharp reduction has raised questions about why the previous agreement was so expensive and whether the authority could have saved millions of dollars earlier.

Speaking at the Government Accountability Series on Monday, October 12, 2026, DVLA Chief Executive Officer Julius Neequaye Kotey said the previous agreement cost US$51.8 million annually between 2023 and 2025, bringing the total to US$155.4 million over the three years.

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He explained that the authority reviewed the agreement and negotiated a new deal costing GH¢2 million for the period from 2026 to 2028.

“Instead of paying $51.8 million annually, summing up to $155.4 million for three years, we are now paying 2 million Ghana cedis for the three years,” he said.

Kotey said the new agreement would save the authority about US$50 million annually.

“This translates to savings of about $50 million every year,” he added.

The announcement has drawn attention to the significant difference between the cost of the previous agreement and that of the new deal.

However, the DVLA has not clarified whether the new agreement covers the same services as the previous one.

The development has also raised questions about public spending and whether similar agreements at other state institutions could be reviewed to reduce costs.

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The DVLA said the renegotiation forms part of efforts to cut expenditure and improve the authority’s financial management.

DR/MA

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