#SONA2025: Mahama announces energy sector reforms to address GH¢70bn debt and stabilise power supply

President John Dramani Mahama has outlined a series of reforms aimed at salvaging Ghana’s energy sector from financial distress, citing a staggering GH¢70 billion debt left by the previous administration.

Delivering his first State of the Nation Address (SONA) on Thursday, February 27 2025, he detailed immediate and long-term measures to address the crisis and ensure a reliable power supply.

Energy sector crippled by debt and inefficiencies

Mr Mahama revealed that despite the collection of over GH¢45 billion in energy sector levies over the past eight years, the sector remains overwhelmed by debt.

He warned that state-owned enterprises, independent power producers, and fuel suppliers were struggling to stay afloat, posing a threat to power generation across the country.

“The financial distress in the energy sector is not just about electricity generation; it threatens the overall stability of our economy,” he said.

Emergency interventions to maintain power supply

The president disclosed that essential maintenance of the West African Gas Pipeline had been postponed from 2024 to 2025, exposing Ghana to potential power shortages. In response, his administration had mobilised emergency fuel supplies to sustain electricity generation until maintenance is completed in March 2025.

“We expect a marked improvement in the power situation once the pipeline is back in operation, allowing additional gas flow from Nigeria,” he assured.

Reforms to prevent future crises

To prevent a recurrence of these challenges, Mr Mahama directed the Minister for Energy and Green Transitions to implement structural reforms, including:
 • Establishing a single revenue collection account to prevent financial leakages.
 • Enforcing the cash waterfall mechanism to prioritise debt payments.
 • Cutting wasteful expenditures within state utilities.

Private sector collaboration for efficiency

The president also announced plans to involve the private sector in metering and billing, citing the success of a pilot partnership between the Electricity Company of Ghana (ECG) and Enclave Power Limited.

“This model, which has achieved 99% revenue collection and near-uninterrupted power supply, provides a practical solution for improving efficiency,” he stated.

Path to recovery

Mr Mahama expressed confidence that these measures would restore stability to the energy sector while ensuring a steady and affordable electricity supply for Ghanaians.

“This is not just about resolving today’s challenges—it is about creating a resilient and sustainable energy sector that drives national development,” he said.