Ghana’s total petroleum revenues since the beginning of commercial production up to 2017 is US$4.009billion, from the sale of 253,085,873 barrels of crude oil.
The West African country, which begun commercial production of oil in 2010, received the highest annual petroleum revenue in 2014, earning US$978.01million as against the lowest revenue of US$247.18 million in 2016. Price fluctuations on the global crude oil market largely caused the poor oil revenue income in 2016.
Royalties (5-12.5percent), surface rentals, corporate tax of 35percent, carried and participating interest (15percent minimum) as well as other avenues such as bonuses, licencing fees and additional entitlements constitute the sources of petroleum revenues to the state.
Distribution of the total oil revenue realised between 2011 and 2017 are US$1.6966 billion to Annual Budget Funding Amount (ABFA); US$1.2393billion to GNPC; US$776.54million to the Ghana Stabilisation Fund (GSF); and US$323.72million to the Ghana Heritage Fund (GHF).
According to the Public Interest Accountability Committee’s (PIAC) report, allocations to the various areas are slightly higher than receipts because of the transfer from the GSF to ABFA.
Speaking at a public forum at Bechem in the Tano South Municipality of the Brong Ahafo Region, PIAC’s Chairman Dr. Steve Manteaw said the four priority areas government where selected to spend ABFA (2011-2016) were agricultural modernisation, amortisation, capacity-building and roads & other infrastructure. He however indicated that there were some allocations outside the four designated areas.
“These included the GH¢5million and GH¢10million financial support to the Venture Capital Fund in 2012 and 2013 respectively; GH¢35million to MASLOC in 2011; GH¢2million to MUSIGA for research in 2011; GH¢2million recapitalisation for Exim Guarantee Company Ghana in 2012; and GH¢556,655 printing & transportation of stationery to seven regions in 2013,” Dr. Manteaw stated.
PIAC, he noted, is concerned about the use of petroleum revenues to cover too many areas, especially outside the four priority areas.
“This has weakened the potential impact of oil revenues on the socio-economic development of Ghana. Only 11percent of petroleum revenue has been allocated to the agriculture sector, which is the mainstay of the economy,” he said.
Dr. Manteaw urged government to invest petroleum revenues in only a few ‘legacy projects’ – such as modernisation, agriculture and railway development.