President John Mahama has defended the government’s decision to impose an additional GH¢1 Energy Sector Recovery Levy, stating that the move—though difficult—is critical to resolving the country’s crippling energy sector debts and preventing a return to erratic power supply.

Speaking at the Jubilee House during the presentation of the final report from the National Economic Dialogue, the President assured that the recent appreciation of the Ghana cedi has cushioned the impact, meaning consumers will not face immediate fuel price increases.

The energy sector, burdened with over US$3.1 billion in debt, faces an additional US$1.8 billion requirement to finance fuel for thermal power generation in the coming months.

President Mahama warned that failure to act would risk another cycle of dumsor (power outages), which could cripple businesses and stifle economic recovery.

“If left unaddressed, this situation poses a severe threat to national productivity and industrial growth,” the President said. “We cannot afford to gamble with our energy security. The levy is a tough but necessary step to stabilise the sector.”

Parliament, under a certificate of urgency, approved an amendment to the Energy Sector Levies Act (ESLA), introducing the GH¢1 increment expected to generate GH¢5.7 billion annually.

“With the recent gains in macro stability and the strengthening of the Ghana cedi, this levy is not expected to result in any immediate fuel price increases,” President Mahama said.

The President assured that revenues from the levy would be strictly ring-fenced to pay down energy sector debts and fund fuel purchases, bypassing the Consolidated Fund to avoid misuse.

“Every pesewa will be accounted for,” he said. “The fund will undergo regular audits, and reports will be made public. We owe it to Ghanaians to ensure that this money is used for its intended purpose.”

He added that the government would also work to reduce inefficiencies in energy procurement and distribution while expanding social interventions for vulnerable groups.

Outlook

Looking beyond the immediate crisis, President Mahama outlined a brighter energy future for the country.

He expressed confidence that the country’s energy mix would gradually shift away from expensive liquid fuels as domestic gas production increases from the ENI Sankofa, Jubilee, and TEN fields. Additional gas supplies expected through the West African Gas Pipeline would further reduce reliance on costly fuel imports.

“As we successfully transition to greater gas utilisation in our energy generation, we will be able to redirect more of the levy proceeds towards clearing the accumulated legacy debts that have plagued our energy sector for years,” the President said.

Economic reform agenda

The National Economic Dialogue report presented to the President contained a comprehensive blueprint for economic recovery, with several key reform areas.

On fiscal discipline, the government has committed to implementing a binding debt ceiling designed to reduce Ghana’s debt-to-GDP ratio to 45 per cent by 2028.

To strengthen oversight, an Independent Fiscal Council will be established by the third quarter of 2025 to provide professional, non-partisan monitoring of national budgeting and borrowing practices.

A major economic stimulus will come through the government’s flagship 24-hour economy programme, which will provide incentives for extended operations in key sectors including agri-processing, manufacturing, and logistics.

The Ghana Export Promotion Authority has been tasked with implementing an ambitious new strategy targeting US$10 billion in non-traditional exports by 2028.

Recognising the need for institutional reform, the government will launch a Public Sector Productivity Strategy in January 2026 aimed at eliminating duplication, digitising operations, and improving service delivery standards.

President Mahama said education and training systems would be realigned to better meet labour market demands, with particular focus on preparing youth for emerging job opportunities.

Robust implementation

To ensure these reforms translate into tangible results, President Mahama announced the creation of an Inter-Ministerial Implementation Committee that will coordinate execution of all recommendations from the National Economic Dialogue report.

The committee will include civil society and private sector representatives as observers, fostering broad-based accountability.

Biannual progress reports will be made public, and the President committed to holding annual review sessions to assess implementation progress.

“This report represents more than just policy recommendations — it is a solemn covenant between the government and the people of Ghana,” President Mahama said.

“We will honour this covenant through transparent governance, urgent action, and unwavering discipline.”

President Mahama urged Ghanaians to support the reforms, describing the report as a “covenant between government and the governed.”

The short ceremony was attended by cabinet ministers and senior government officials, including the Minister for Finance, Ato Forson, and the Chief of Staff, Julius Debrah.

Also present were members of the National Economic Dialogue planning committee, including its chairman, Ismael Yamson.