Government has begun paying ENI, Tullow and WAPCo to ease energy sector debt – Jinapor

The government has begun paying off parts of Ghana’s long-standing energy sector debt, with recent transfers made to key suppliers including ENI, Tullow Oil, and the West African Gas Pipeline Company (WAPCo), the Minister for Energy and Green Transition, Mr John Jinapor, has confirmed.

Speaking at a press briefing in Accra on Wednesday, July 16, 2025, Mr Jinapor said the payments are part of broader efforts to restore confidence in the power sector and avoid service interruptions.

“So far, we have paid ENI and Tullow. WAPCo has also received payments, US$12 million initially,” Mr Jinapor stated. “We’re now current on these obligations, which is why the threats of shutdowns have subsided.”

He also disclosed that the government has started replenishing the US$500 million World Bank-backed partial risk guarantee, which had been nearly depleted under the previous administration. “We’ve restored nearly half of it already,” he said.

Mr Jinapor explained that the payments are being supported by a restructured energy sector levy, which is now ring-fenced by the Ministry of Finance to deal specifically with legacy debts.

“We’re no longer using energy levy funds for unplanned expenditures. The revenue is going directly into settling debt,” he said.

According to Mr Jinapor, this is part of a broader programme involving ENI, Tullow, Nigerian Gas, and WAPCo to stabilise the energy sector both financially and operationally.

He added that the ongoing reforms are designed to reduce the sector’s dependence on the Ministry of Finance for routine payments. “This is how we free up fiscal space while making the energy sector self-sustaining,” he said.

A full breakdown of paid and outstanding debts, he noted, will be made available through the Ministry of Information in line with the government’s transparency efforts.

“This is a journey, not a sprint,” Mr Jinapor said. “But we are firmly on the path to financial recovery.”