Ghana spent over $8 billion on energy sector losses in 9 years - President Mahama

President John Dramani Mahama has disclosed that Ghana has spent more than $8 billion over the past nine years to address financial shortfalls in the energy sector, raising concerns about the strain on the country’s economy.

Speaking at a dialogue with Organised Labour at the Presidency on Tuesday, March 17, 2026, the president highlighted the far-reaching consequences of the sector’s persistent challenges.

“These losses directly impact the economy’s ability to improve wages, enhance working conditions, and expand social protection,” he said.

He revealed that in 2025 alone, the government paid approximately $1.57 billion to settle legacy debts within the energy sector, underscoring the scale of the financial burden.

Ghana's public debt falls to GH¢641 billion but dollar value rises

According to President Mahama, inefficiencies — particularly in revenue collection at the billing and metering stages — continue to undermine the sector’s performance and drain national resources.

“Fixing the energy sector is critical to stabilising the broader economy and creating the fiscal space needed to support workers and vulnerable groups,” he emphasised.

President Mahama said the government is implementing comprehensive reforms to restore discipline, eliminate waste, and improve efficiency, especially at the last-mile distribution level.

He stressed that these measures are not just about the energy sector but are vital for broader economic stability and sustainable growth.

“Prudent financial management and sector-specific reforms are essential to strengthening Ghana’s economic foundation and improving the livelihoods of our citizens,” the president added, urging all stakeholders to support efforts to reform and modernise the sector.