ACEP warns of looming crisis in Ghana's energy sector

The Executive Director of the Africa Centre for Energy Policy (ACEP),Benjamin Boakye, has raised concerns about the energy sector, describing it as plagued by inefficiencies and mismanagement.

In a detailed opinion piece, Boakye emphasized the urgent need for reform, citing an annual waste of over GH¢50 billion, far exceeding Ghana’s annual oil revenue.

“The energy sector has been systematically decimated, enriching a few while the public bears the cost through taxes, levies, and inflated margins,” Boakye wrote.

Boakye criticized the overstaffing of energy agencies, driven largely by politically motivated appointments, which increases public expenditure while yielding little efficiency.

He also highlighted the precarious state of the Electricity Company of Ghana (ECG), describing it as a major drain on national resources due to persistent political interference and poor management.

“The ECG has become the single largest dependent on the national budget,” he lamented.

Boakye warned of the upstream oil and gas sector’s decline, urging swift measures to rebuild investor confidence and unlock an estimated $2 billion in investments by 2025.

He called on President-elect John Mahama to undertake decisive reforms, describing the situation as requiring “a surgical examination” to restore efficiency and sustainability.

Without immediate action, Boakye cautioned, the energy sector’s challenges could spiral further out of control, with dire consequences for the economy.