Oil price slump could hurt Ghana - Mahama

President John Mahama is worried Ghana could be hugely affected in the area of infrastructure development if global oil prices continue to slump drastically.

Mahama believes the trend could affect revenue and plans to build schools, roads and hospitals among others.

Oil prices have fallen to about $55 on the world market.

The drop in the price of oil spells good news for economic growth by putting more cash into motorists’ pockets. The International Monetary Fund said a prolonged oil price drop could boost global growth by up to 0.7 per cent next year and 0.8per cent in 2016.

However, young oil-producing Ghana is worried since petroleum exports from the offshore Jubilee field are a major source of government revenue. The West African country exports over 100,000 barrels of oil per day.

President Mahama told the Council of State at their end-of-year meeting that the oil price fall can have adverse effects on Ghana.

“If it continues low, it will affect us on the revenue side in respect of how much money comes into the annual budget funding amount which we use for capital expenditure under the budget," Mahama pointed out.

The ruling National Democratic Congress has projected in the 2015 budget to bag Gh¢4.2 billion ($1.3 billion) in oil revenues.