President John Dramani Mahama has revealed that Ghana has spent more than $8 billion over the past nine years to address financial shortfalls in the energy sector, raising concerns about the impact on the country’s economy.
Speaking during a dialogue with organized labour at the presidency on Tuesday, March 17, 2026, the President said the continuous financial burden on the energy sector has significantly affected government’s ability to improve wages, enhance working conditions, and expand social protection programmes.
He disclosed that in 2025 alone, the government paid approximately $1.57 billion to settle legacy debts within the sector, underscoring the scale of the financial challenges.
According to President Mahama, persistent inefficiencies, particularly in revenue collection at the billing and metering stages, continue to undermine the performance of the energy sector and drain national resources.
“These losses directly impact the economy’s ability to improve wages, enhance working conditions, and expand social protection,” he indicated.
The President stressed that addressing these inefficiencies is critical to freeing up resources for national development.
He noted that government is implementing reforms aimed at restoring discipline in the sector, eliminating waste, and improving efficiency, especially at the last-mile distribution level.
He explained that fixing the energy sector is key to stabilizing the broader economy and creating the fiscal space needed to support workers and vulnerable groups.
President Mahama made the remarks while outlining broader economic challenges facing the country and the need for structural reforms to ensure sustainable growth.
He emphasized that prudent financial management and sector-specific reforms are essential to strengthening Ghana’s economic foundation and improving the livelihoods of citizens.
Source: Mubarak Yakubu/angelonline.com.gh
