Energy Minister-Designate John Abdulai Jinapor has raised alarms over the mounting debt in Ghana’s energy sector, calling it a pressing issue that demands urgent intervention.
During his vetting before Parliament’s Appointments Committee on January 13, 2025, Mr. Jinapor disclosed that the sector’s debt had surged to over $3 billion as of January 12, 2025.
He explained that the rising debt exacerbates existing challenges, including the government’s financial obligations to Independent Power Producers (IPPs), which stood at $1.2 billion as of October 2024.
Mounting energy debt
Providing context, Mr. Jinapor noted that the Mahama administration had left an energy sector debt of $2.1 billion as of August 31, 2017. He emphasized the need for stronger financial management to tackle the increasing liabilities.
“When we left office on August 31, 2017, the debt was $2.1 billion. As of yesterday, January 12, 2025, the outstanding debt has exceeded $3 billion,” he stated.
He attributed the escalating debt to unaccounted-for power sales and urged immediate action to address the crisis. Mr. Jinapor stressed the importance of pragmatic solutions to ensure the energy sector’s sustainability and protect Ghana’s broader economic stability.
By Alhassan Abass/thenewsbulletin24.com
