Finance Minister Dr. Cassiel Ato Forson has delivered a sobering assessment of Ghana’s energy sector, revealing to Parliament that the country is grappling with an energy debt crisis amounting to $3.1 billion as of March 2025.

The debt includes outstanding payments to Independent Power Producers, state-owned enterprises, and fuel suppliers. According to the Minister, the situation is further compounded by the drawdown of guarantees from institutions like the World Bank, which now obligates the government to raise an additional $632 million to replenish those guarantees.

Dr. Forson warned that at least $3.7 billion will be required to clean up the sector’s debt and provide a fresh start for Ghana’s struggling electricity industry.

He attributed much of the financial strain to the country’s overdependence on thermal power generation, which has led to mounting revenue shortfalls.

Notably, he explained, the cost of liquid fuel used to run thermal plants is not factored into the current electricity tariff, exacerbating the financial gap.

As part of efforts to stabilise the sector, the government is proposing an increase in the export price of petroleum products such as petrol and diesel.

However, the Minister assured that domestic consumers will not bear the brunt of this adjustment, as the gains from the recent appreciation of the Ghanaian Cedi will help offset the impact.

“The energy sector is at a tipping point,” Dr. Forson cautioned.

“If the current trajectory is not reversed, we risk a total collapse.

The government is therefore committed to implementing urgent reforms to restore financial stability and ensure a reliable power supply for all Ghanaians.”