Parliament pushes for $300m compensation in budget to fast-track Petroleum Hub

Ghana’s Parliament is calling on the Minister of Finance, Dr Cassiel Ato Forson, to allocate $300 million in the upcoming Mid-Year Budget Review to compensate residents whose lands were acquired for the Petroleum Hub project.

The appeal was championed by the Speaker of Parliament, Rt. Hon. Alban Sumana Kingsford Bagbin, who reaffirmed his commitment to the strategic national initiative and emphasised the urgency of unlocking funds to bolster progress.

“Although I lack the authority to issue a decree, I fervently urge the Minister to prioritise provisions for compensation in the Mid-Year Budget Review,” Speaker Bagbin stated in Parliament on Friday, 13 June 2025.

He explained that while he could not issue a directive to the Finance Minister, he would “earnestly appeal to and galvanise” him to include the compensation package in the budget review to demonstrate government’s commitment to the project and attract private sector investment.

“Extensive research on this initiative traces back to the tenure of the late President, Professor John Evans Atta Mills. During John Mahama’s initial term, the project was actively advanced, and H.E. Akufo-Addo sustained its momentum. Now, under H.E. Mahama’s second term, it is manifest that the nation collectively recognises this as a strategic imperative,” he noted.

Energy Committee backs urgent action

The Speaker’s comments followed a statement by the Chairman of the Parliamentary Select Committee on Energy, Hon. Emmanuel Bedzrah, who called for urgent national focus on the Petroleum Hub.

Addressing the House, the Ho West MP highlighted the project's transformational potential, noting that its completion could position Ghana as a key energy and commercial hub in West Africa.

“The Petroleum Hub project is of paramount national strategic importance. If addressed with the requisite urgency, it holds the potential to revolutionise Ghana’s energy sector, unlock billions in investments, and elevate our nation as a regional industrial and commercial powerhouse,” he said.

Hon. Bedzrah urged that 10 pesewas from the Unified Petroleum Price Fund (UPPF) be channelled to the Petroleum Hub Development Corporation (PHDC) immediately and reiterated the need for a $300 million budgetary provision to compensate landowners in Jomoro, the site earmarked for the hub.

He added that the project is projected to create direct employment for over 780,000 Ghanaians, making it a critical economic intervention.

Lawmakers lend support

Several MPs across party lines echoed the call for expedited action, stressing the economic significance of the project and the need to maintain public trust by fulfilling compensation promises.

The Petroleum Hub is expected to house refineries, petrochemical plants, storage and distribution infrastructure, and marine services—all components geared toward boosting Ghana’s energy independence and regional competitiveness.

Speaker Bagbin said that timely disbursement of compensation would send a clear signal of the state’s commitment and serve as a catalyst for attracting international partners.

“The transformative impact of a petroleum hub, as exemplified by Singapore, is undeniable. We must act now.”