Ghana’s total earnings from exports of crude oil, production activities, surface rental, and corporate taxes for 2023 have seen a significant decline.
A review of Ghana’s Petroleum Funds report from 2022 to 2023 has shown a fall of more than $400 million.
In 2022, Ghana recorded $1.424 billion in total receipts compared to the $1.062 billion in 2023. Furthermore, the government registered $364 million in 2023 concerning corporate taxes paid by the oil exploration companies operating on Ghana’s oil fields, compared to $388 million in 2022.
The Ghana Petroleum Revenue Management Act (2011) (Act 815) established and defined the objectives of the Ghana Stabilisation Fund and the Ghana Heritage Fund.
The Ghana Stabilisation Fund aims to cushion the impact on, or sustain public expenditure capacity during periods of unanticipated petroleum revenue shortfalls. On the other hand, the Ghana Heritage Fund is designed to support the development of future generations when petroleum reserves have been depleted.
The 2023 Ghana Petroleum Funds report showed that the Ghana Stabilisation Fund was estimated at $190 million ending December 2023. Meanwhile, the Ghana Heritage Fund had more than $1 billion, meaning that Ghana has saved $1.2 billion through the two funds as well as the investments.
These funds are held offshore at the Federal Reserve Bank of New York as the Bank of Ghana’s Petroleum Holding Fund Account.
Overall, the report presents a clear picture of the challenges faced by Ghana’s petroleum sector in 2023 and the measures in place to sustain and support future generations through prudent financial management.
