Ghana’s petroleum revenue management framework underwent sweeping changes in 2025, redirecting all discretionary oil funds toward infrastructure projects while fundamentally altering how the nation uses its petroleum wealth for development.
The amendments to the Petroleum Revenue Management Act (PRMA), signed into law by President John Dramani Mahama in April 2025, mandate that 100 percent of the Annual Budget Funding Amount (ABFA) be channeled exclusively toward infrastructure investment, marking a decisive break from previous allocations that spread petroleum revenues across multiple sectors.
At a recent stakeholder engagement hosted by the Public Interest and Accountability Committee (PIAC), Isaac Jamnah Esquah outlined how the changes represent both opportunities and risks for Ghana’s long term development planning. The amendments tie petroleum spending directly to the government’s $10 billion Big Push infrastructure agenda, raising questions about whether this approach serves national interests or merely facilitates implementation of political manifestos.
Under the revised framework, ABFA funds that previously supported recurring expenditures like the Free Senior High School (Free SHS) program are now restricted to infrastructure projects only. The Free SHS initiative, which historically received approximately 55 percent of its funding from ABFA, has been transitioned to Ghana Education Trust Fund (GETFund) financing, with the government uncapping GETFund to provide GH¢3.5 billion for the program in 2025.
This shift in funding sources addresses long standing concerns about using petroleum revenue, an inherently volatile resource, for recurring educational costs. However, it also strains GETFund’s traditional mandate of supporting infrastructure development in educational institutions. Education Minister Haruna Iddrisu acknowledged the tension, stating that using GETFund for Free SHS “will affect the traditional core mandate of the GETFUND,” but emphasized the need to sustain the program.
The amendment creates a clear philosophical divide in how Ghana manages its oil wealth. Previous versions of the PRMA allocated at least 70 percent of ABFA toward public investment, with the remainder available for other expenditures. Now, infrastructure receives everything except a five percent allocation to the District Assemblies Common Fund, which itself represents a reduction from previous local government allocations.
Several major infrastructure projects that were underway have been discontinued under the new framework, including the Tema Motorway extension and various road developments. This suggests the Big Push agenda prioritizes selective legacy projects over continuing existing commitments, a decision that could leave some communities with incomplete infrastructure.
Critics worry the amendments give too much discretion to sitting governments. Without being tied to a comprehensive, multi decade national development plan, petroleum revenues could be deployed based on political priorities rather than strategic national needs. Each election cycle could theoretically bring radical shifts in how oil wealth gets invested, undermining continuity and long term planning.
The changes come with significant implications for oversight and transparency. PIAC, the independent watchdog established to monitor petroleum revenue usage, has seen its operations severely compromised after the 2025 amendment eliminated its guaranteed funding from ABFA. The committee’s budget was slashed to GH¢4.6 million for 2025, representing just 21.9 percent of its budgeted needs and 55 percent of what it actually received in 2024.
Without dedicated funding, PIAC has conducted only one regional engagement and two project inspections in seven months of 2025, far short of its target of 64 annual inspections. The organization has suspended numerous planned public outreach activities, including media engagements on its 2024 annual report, which forms part of its legal mandate. This reduction in oversight capacity arrives precisely when monitoring petroleum expenditure becomes more critical given the concentrated infrastructure focus.
Civil society organizations have raised additional concerns about transparency. Unlike previous budgets that detailed specific ABFA allocations, the 2025 budget statement and mid year review listed projects without indicating costs, making it difficult for citizens to track whether petroleum revenues are being used efficiently or effectively.
The structural changes also affect how Ghana balances immediate development needs against long term financial security. The PRMA established funds designed to stabilize government finances during oil revenue downturns and build intergenerational wealth. While these funds remain intact, concentrating ABFA entirely on infrastructure could leave less room for adjustments if oil prices collapse or production declines.
President Mahama has assured stakeholders that the Big Push will target roads, major bridges, education and health infrastructure, plus agricultural productivity improvements, with plans to invest $2 billion annually over five years. The government argues this concentrated approach will create visible, transformative projects rather than spreading petroleum wealth too thinly across multiple sectors.
Supporters of the amendment contend that previous allocations diluted impact and left few lasting monuments to Ghana’s oil wealth. By focusing exclusively on infrastructure, they argue, the nation can finally build projects that will serve multiple generations and justify tapping finite petroleum resources. Roads, bridges, and public facilities should outlast oil reserves, creating enduring value.
However, energy analyst Kwame Jantuah questioned whether the reforms prioritize national development or personal political objectives. Speaking during the PIAC stakeholder engagement, he challenged implementation sincerity, noting that Ghana has passed fine laws before that become “something else” when applied. His concern reflects broader skepticism about whether infrastructure investments will genuinely serve long term national priorities.
The debate touches fundamental questions about resource governance in developing nations. Should petroleum revenues fund broad based development across health, education, and infrastructure? Or should they concentrate on legacy projects that might transform national capacity? Ghana’s 2025 amendments represent a clear choice for the latter approach, but success depends entirely on execution quality and genuine commitment to national interest over political expediency.
For children and future generations, the stakes are substantial. If the Big Push delivers transformative infrastructure that catalyzes economic growth and improves quality of life, concentrating petroleum revenues could prove visionary. If projects are selected based on political considerations, poorly executed, or leave maintenance burdens the nation cannot afford, the amendments could represent a massive missed opportunity to build lasting prosperity from finite oil wealth.
The coming years will test whether Ghana’s petroleum revenue, freed from recurring expenses and concentrated on infrastructure, can deliver the transformational impact the government promises. With weakened oversight mechanisms and political discretion largely unchecked, the burden falls on government leadership to prove this gamble on concentrated infrastructure investment serves the nation rather than narrower interests.
Source: newsghana.com.gh
