Parliament has approved a request for the review of the investment policy and management of the Ghana Petroleum Funds in line with section 30 (1a) of the Petroleum Revenue Management Act, 2011 (Act 815).
The approval will allow the government to invest the $1.456 billion sitting in the petroleum fund in high-yielding instruments to generate at least eight per cent interest each year.
Presently, the $1.456 billion in petroleum funds yields only one per cent annually, an investment that is not helping the country reap maximum returns on its petroleum funds.
The request was presented to the House on Thursday, November 13, 2025 by the Minister of Finance, Dr Cassiel Ato Forson, and it was referred to the Committee on Economy and Development for consideration and report.
‘Interest too small’
Providing a justification for the request and seek the House’s approval of same, Dr Forson said Ghana had been reaping one per cent interest on its petroleum funds because government had invested the money in mostly IMF and the World Bank issued bonds that offered low interest of one per cent annually.
“Mr Speaker, largely the instrument we have invested in are largely IMF or World Bank issued bonds,” he said.
He submitted that the government believed that the one per cent interest on Ghana’s petroleum fund investment was too small.
He said decision to request for a review of the petroleum funds investment policy and management was based on the advice of the Investment Advisory Council.
Disturbing data
Per a 2024 data, petroleum revenue which accrued to the government of Ghana stood at $840.7 million but today the revenue has significantly reduced to $370.34 million.
That is a reduction of 56 per cent of petroleum revenue receipts to the country. In 2025, there was a 25 per cent reduction of petroleum production as compared to 2024.
Time to review is now
Dr Forson said he presented a memo to Parliament for approval of the request in line with section 27 (1) and (2) of Act 815.
He said section 27 (1) of Act 815 stated that the resources of the Ghana Petroleum Fund and subsequently the Ghana Petroleum World Fund shall be invested in qualifying instruments prescribed by an Executive instrument.
The two, he said, further stated that the range of instrument designated as qualifying instrument shall be reviewed every three years or sooner by the Finance Minister on the advice of the Investment Advisory Committee.
Since 2011, he said that provision had not been adhered to and as a result Ghana’s petroleum resources, as invested, was yielding only about one per cent in interest.
“Unfortunately, our petroleum resources have not worked hard enough for us and we believe that the time has come for us to review how we invest this instrument,” he said.
Take action now
The minister explained that section 39 of Act 815 required the Finance Minister to provide Parliament with any advice given by the Investment Advisory Committee (IAC) within seven days.
On the November 11, 2025, he said the IAC advised him to take action by amending the qualifying instrument.
In line with section 39, Dr Forson said he was compelled to come before the Parliament and provide the advice as well as seek further approval.
He indicated that section 30 of Act 815 said the functions of the IAC were to formulate and propose to the minister the investment policy and management of Ghana's Stabilisation Fund and the Heritage Fund, and the minister shall submit it for approval by Parliament.
“Mr Speaker it does not only say seven days but after receiving the advice in seven days, I have to come before you.
“The law is quite a strict one and if you look at section 38 I have 48 hours only to review this and appear before you and today is the seventh day since I received advice and hence it is important to bring this to your notice,” he said.
Two-track approach
Dr Forson said what he liked about the amendment was the fact that it made certain proposals which recommend a two-track approach to the amendment.
He the amendment required that the existing base of foreign investment grid sovereign instrument and additional categories of assets subject to strict criteria and caps were retained.
“They also we also clarify that any domestic instrument held by the Ghana Petroleum Funds does not constitute borrowings against the Petroleum Holding Fund or Petroleum reserves and the amendment of the amended Act 815,” he said.
That, he said, did not contradict section 10 (4) of Act 815 which provided that “every 15 years Parliament may review restrictions placed on the Ghana Heritage Fund and transfer accrued interest into any other funds established under Act 815”.
The minister said even though the amendment sought to add on, they had provided very strict criteria to make sure that at the minimum Ghana’s petroleum funds were protected and at the same time yielding the necessary income to grow the funds over a period of time.
In so doing, he said the advice by the IAC was to include foreign currency denominated debt instruments issued under government approved framework to finance national energy investment in electricity generation and natural gas processing as well as sovereign and multilateral energy instruments which were denominated in internationally convertible currencies and hold investment grid or equivalent ratings.
Minority’s support
Supporting the motion, the MP for Damango, Samuel Abu Jinapor, said he supported effort that was being made to broaden the investment policy and management of the GPMF in accordance with section 30 (1a) of the Petroleum Revenue Management Act, Act 815.
He said the advisory committee did “a very excellent job on their observations” specifically on rationale for the request.
He, however, urged the House to ensure that the Finance Minister and the government put in place measures and policies to ensure that “we have maximisation of these instruments which are being alluded to”.
“Parliament must continue to keep an eye on the criteria that is going to be used and the specific investment instruments which are going to be deployed by the Finance Ministry and the government to ensure that we maximise the additional instrument which will accrue to this fund,” he said.
Declining production
The MP for Damango pointed out per data in 2024, petroleum revenue which accrued to the government of Ghana stood at $840.7 million but today the revenue reduced to $370.34 million.
“That is a reduction of 56 per cent of our petroleum revenue receipts,” he said, adding that in 2025 there was a 25 per cent reduction of petroleum production as compared to 2024,” he said.
