With President John Dramani Mahama’s administration taking shape and the nomination of John Abdulai Jinapor as Minister-designate for Energy, Ghana’s oil and gas sector faces a pivotal moment.
As the country seeks to navigate challenges such as political interference, energy transition, and institutional inefficiencies, the sector’s outlook in 2025 and beyond will depend on bold policy reforms and governance frameworks to optimize resource wealth for sustainable economic growth.
In an interview with Vaultz News, Joshua Batsa Narh, Executive Chairman of the Energy Chamber Ghana and Director at Wingfield Group, highlighted the critical role of Mr. Jinapor’s leadership in addressing these challenges.
“Mr. Jinapor, having previously served as Deputy Minister of Energy, brings a blend of political acumen and sector knowledge.
“His familiarity with energy policy and stakeholder engagement positions him as a capable figure to address upstream production inefficiencies, regulatory constraints, and financing for energy transition projects.”
Joshua Batsa Narh, Executive Chairman of the Energy Chamber Ghana
For Ghana’s oil and gas sector to thrive, experts agree that significant reforms are needed to strengthen institutional independence, enhance fiscal stability, and improve regulatory oversight.
The operational independence of key state institutions like the Petroleum Commission (PC) and Ghana National Petroleum Corporation (GNPC) is essential.
Joshua Narh emphasized the need to depoliticize appointments and prioritize merit-based leadership in regulatory bodies.
“Best practices from countries like Norway, with its Directorate of Petroleum, and Nigeria’s transition to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), demonstrate the importance of insulating regulatory agencies from political interference.”
Joshua Batsa Narh, Executive Chairman of the Energy Chamber Ghana
In addition, he noted reinforcing the Petroleum Revenue Management Act (PRMA) could ensure compliance with guidelines for stabilization and heritage funds, reducing discretionary spending of oil revenues and increasing transparency in fund allocation.
Ghana’s Local Content and Local Participation Regulations (L.I. 2204) provide a framework for ensuring indigenous participation in the oil and gas sector.
Narh urged Mr. Jinapor to prioritize enforcing and enhancing these regulations to build local capacity.
“Collaboration with international energy companies to provide technical training for Ghanaian workers is crucial for knowledge transfer in advanced upstream technologies.”
Joshua Batsa Narh, Executive Chairman of the Energy Chamber Ghana
By fostering a skilled local workforce, Ghana can reduce reliance on foreign expertise and increase its share of benefits from oil and gas activities.
The sector’s growth relies heavily on attracting substantial capital for exploration, production, and infrastructure development.
To achieve this, Narh recommended simplifying tax regimes and offering attractive fiscal terms to draw international oil companies (IOCs).
“Mozambique’s Rovuma LNG fiscal stability agreements offer a model for fostering long-term investment confidence,” he noted.
Additionally, he stressed that reducing bureaucratic bottlenecks in the approval processes for licenses and permits could enable timely project execution, enhancing Ghana’s competitiveness in the global oil and gas market.
Energy Transition: Balancing Growth and Sustainability
As the global energy landscape shifts toward low-carbon alternatives, Ghana must align its oil and gas activities with sustainable practices.
Ghana’s significant natural gas reserves present an opportunity to reduce flaring, lower power generation costs, and support industrialization. Accelerating gas infrastructure projects, such as the Tema LNG Terminal, is critical for harnessing this resource effectively.
“Monetizing natural gas not only aligns with global sustainability goals but also reduces reliance on crude oil revenues, diversifying the sector’s contribution to the economy.”
Joshua Batsa Narh, Executive Chairman of the Energy Chamber Ghana
Narh also stressed the importance of incentivizing renewable energy investments and integrating them into the national energy mix.
This could involve partnerships with international organizations to fund solar, wind, and biomass energy projects, positioning Ghana as a leader in Africa’s energy transition.
Public trust in the management of oil revenues and sector activities is crucial for fostering long-term sustainability. Narh identified transparency as a key area for improvement under Mr. Jinapor’s leadership.
Mandating the regular publication of production rates, revenue flows, and environmental impact assessments, in collaboration with the Extractive Industries Transparency Initiative (EITI), could enhance accountability and public confidence.
“Conduct independent audits of GNPC and other state-owned enterprises (SOEs) to ensure adherence to financial best practices.”
Joshua Batsa Narh, Executive Chairman of the Energy Chamber Ghana
Despite the challenges, Ghana’s oil and gas sector holds immense potential to drive economic growth.
With proper governance frameworks, strategic investments, and a commitment to sustainability, the sector can support national development goals while addressing pressing issues like energy poverty and unemployment.
READ ALSO: Economic Recovery or Rising Debt? Ghana’s IMF Assistance in Perspective
