Ghana’s government paid $1.47 billion in 2025 to clear long-standing energy sector debts, restoring a depleted World Bank guarantee and settling arrears owed to power producers, the finance ministry said on Monday.
The payments mark a major step in addressing chronic financial distress in Ghana’s power sector, which has been plagued by mounting unpaid obligations that contributed to frequent power outages. President John Dramani Mahama had pledged last year to reduce more than $2.5 billion owed to independent power producers (IPPs) and gas suppliers.
“The era of uncontrolled energy sector debt accumulation is over,” the finance ministry said in a statement, adding that tighter fiscal discipline had enabled the government to clear arrears while putting in place provisions to meet future payment obligations on time.
Debt Repayment Details
According to the ministry, Ghana repaid more than $597 million to the World Bank, fully restoring a partial risk guarantee linked to gas supplies from the Offshore Cape Three Points field.
The guarantee, established in 2015, was designed to safeguard nearly $8 billion in private investment in the energy sector but had been severely depleted, undermining investor confidence and the country’s credibility with international partners.
The government also paid $480 million to Italian energy company ENI and commodities trader Vitol to settle outstanding gas invoices tied to electricity generation under the Sankofa Gas Project.
In addition, about $393 million in legacy debts owed to independent power producers were cleared. These included $120 million paid to Turkey’s Karpowership and $59.4 million to Cenpower Generation, based on figures released by the finance ministry.
The ministry said the government has renegotiated all existing agreements with IPPs and is working with Tullow Oil and partners in the Jubilee oil field on a structured payment roadmap. Authorities are also seeking to boost domestic gas production as part of efforts to reduce reliance on more expensive liquid fuels for power generation.
