Government to pay $1.1bn to ENI this year over legacy energy debts — Finance Minister

Finance Minister Dr. Cassiel Ato Forson has raised concerns over the growing financial strain facing the country’s energy sector, revealing that the government is expected to pay $1.1 billion to Italian oil firm ENI in 2025 alone.

In a statement posted on his official Facebook page on Tuesday, March 25 2025, Dr Ato Forson said the payment covers monthly invoices, replenishment of letters of credit, and outstanding arrears.  

He attributed the burden to what he described as “years of neglect” and unaddressed financial obligations within the sector.

“This is a direct consequence of years of neglect in the sector,” Dr Ato Forson wrote. “The previous government failed to address these mounting debts, kicking the can down the road while the liabilities piled up.”

He disclosed that monthly energy sector costs currently stand at GH¢2.5 billion, with GH¢1.9 billion spent on fuel and power generation.

Meanwhile, the Electricity Company of Ghana (ECG) collects only GH¢1.3 billion in revenue each month, creating a shortfall of about GH¢1.2 billion.

According to Dr Ato Forson, this revenue gap is now forcing the government to divert funds from other public services such as healthcare, education, and infrastructure in order to honour energy-related payments that should have been settled years ago.

He also disclosed that during a recent meeting with ENI officials, he made it clear that the government was left with little choice.

“We are now using money that could have gone into development to settle energy bills that have been left unpaid for far too long,” he said.

Despite the fiscal pressures, Dr Ato Forson indicated that the government is taking steps to address the situation and improve the financial stability of the energy sector.

“We will not walk away from our responsibilities,” he said. “We are working to clean up the mess we inherited and ensure the sector is put on a better path.”