2025 Budget: Government’s $1.73bn debt to power producers worsens energy sector crisis - Finance Minister
Ghana’s energy sector is struggling under mounting debt, with the government owing Independent Power Producers (IPPs) a total of $1.73 billion, raising concerns about the country’s electricity supply according to Finance Minister Dr Cassiel Ato Forson.
Presenting the 2025 Budget Statement and Economic Policy to Parliament on March 11, he said the financial gap in the energy sector has reached GH¢35 billion for 2025 alone.
“Despite spending GH¢20.8 billion on the sector last year, the shortfall continues to widen,” he said.
Dr Forson warned that if inefficiencies in the power sector are not addressed, the financial strain could severely impact the economy.
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“These funds could have been used for roads, schools, and hospitals, but instead, they are being drained by inefficiencies and legacy debts,” he said.
The financing gap for the period 2023 to 2026 has been estimated at GH¢140 billion, a figure that exceeds the government’s entire goods and services budget for 2025.
Meanwhile, Ghana’s total public debt has surged to GH¢726.7 billion as of December 2024, raising concerns about the country’s ability to meet its repayment obligations.
Dr Forson told Parliament that domestic debt service alone for the next four years stands at GH¢150.3 billion, with the bulk of payments due in 2027 and 2028.
