Mahama blames GH¢70billion energy debt for sector crisis, pledges urgent intervention

President John Dramani Mahama has stated that his administration inherited an energy sector on the brink of collapse, burdened by unsustainable debt and operational threats from independent power producers and fuel suppliers.

Speaking during his maiden State of the Nation Address (SONA) to Parliament on Thursday, February 27, 2025, he noted that despite collecting over GH¢45 billion in energy sector levies over the past eight years, the previous administration left behind GH¢70 billion in debt as of December 2024.

President Mahama expressed concern that several state-owned enterprises in the energy sector are financially struggling and warned that, without urgent intervention, many could collapse.

"Financial distress in the energy sector remains a significant obstacle to delivering consistent and affordable electricity to Ghanaians and poses an existential threat to our economy," he stated.

He further disclosed that critical maintenance activities, including the scheduled pigging of the West African Gas Pipeline, were postponed from 2024 to 2025 without sufficient contingency measures for alternative fuel supply.

To prevent a crisis, he said his administration swiftly mobilised resources to secure emergency fuel supplies to maintain electricity generation during the temporary closure of the gas pipeline.

"I have been informed that the pigging exercise will be completed in the first week of March, and once again, additional gas will flow from Nigeria," he assured.

President Mahama added that, once the process is completed, Ghanaians could expect an improvement in power supply.