The Director-General of the State Interests and Governance Authority (SIGA), Professor Michael Kpessa-Whyte, has backed calls for the revival of the Tema Oil Refinery (TOR), warning that failure to do so could result in the loss of a key national asset.

Speaking in a television interview on TV3’s Hot Issues programme on Sunday, April 6, Professor Kpessa-Whyte described TOR as a strategic national facility whose operations, if revitalised, could contribute significantly to Ghana’s economic stability, fuel security, and foreign exchange preservation.

“TOR is an important national asset,” he said. “If we decide to make it a strategic asset and recognise its role in ensuring stability in our economy – in terms of fuel supply and currency – then yes, it should be revived.”

Profesor Kpessa-Whyte argued that although the refinery has faced prolonged operational and financial challenges, it still holds the potential to be turned around if the necessary political will and capital investments are committed.

He cited the global trend of refinery expansion in other developing countries as evidence that investing in TOR remains viable.

“Other countries are building new refineries. Why can’t we revive ours?” he asked.

TOR, located in the industrial hub of Tema, was established in 1963 with a mandate to refine crude oil into various petroleum products such as gasoline, kerosene, diesel, and liquefied petroleum gas (LPG). Its role is crucial in reducing Ghana’s dependence on imported refined fuel, ensuring energy security, and stabilising domestic fuel prices.

While acknowledging the state’s current economic constraints, the SIGA boss rejected the idea of an outright sale of TOR and other struggling state-owned enterprises. Instead, he advocated for joint venture partnerships that allow the state to retain a minority stake while benefiting from private sector efficiency and investment.

“For those companies that we must let go, we should explore the joint venture route rather than outright privatisation,” he proposed. “Most of the entities that pay dividends to the state are joint ventures, and that model allows the country to still earn revenue while reviving dead assets.”

Professor Kpessa-Whyte mentioned several dormant state entities – including the Bonsa Tyre Factory, the tomato factory in Pwalugu, and the Consolidated Diamond Mines in Akwatia – that have been idle for decades but continue to attract investor interest.

“If people are willing to invest in factories that have been inactive for over 40 years, then TOR – which has more recent operational history and strategic relevance – should be even more attractive for revival,” he said.

“Giants of economic development like China and other Asian countries, and even in Europe in the early years – it was state-owned enterprises that actually started the process of giving life to industries and industrialisation. The state was heavily present. Do you wonder why we have British Airways? Do you wonder why we have the BBC – the British Broadcasting Corporation? Do you wonder why we have Crown corporations in Canada? American Air, all those things? They all started with heavy state involvement.”

“And so we should not see the state’s involvement in business or areas considered to be commercial as abnormal or an anomaly. We should rather see it as the norm and orient the people who run these institutions to embrace corporate governance practices that will allow them to rake in efficiency and effectiveness. We'll see it again in a year’s time. Thank you very much. And measure ourselves. I believe so.”

The SIGA Director-General also revealed that the authority is currently requiring all loss-making state enterprises under its oversight to submit turnaround plans as part of a broader strategy to improve performance.

“We’re asking the new CEOs and boards of these institutions to at least break even within their first year. If they were making profits before, they must increase their dividends to the state. If they were already paying dividends, the expectation is to increase the quantum,” he noted.

This, he added, is part of efforts to instil good governance, transparency, and value for money within the 170 state-owned entities SIGA supervises.