The Bank of Ghana (BoG) has officially linked its withdrawal from the controversial Gold-for-Oil (G4O) programme to the heavy losses the initiative inflicted on its balance sheet with the 2024 Financial Statements breaking down the extent of the financial hit.
The central bank’s Board of Directors formally approved the decision to exit the programme at its meeting on March 13, 2025, with the Board citing G4O’s material impact on the Bank’s financial position.
For the first time, BoG has quantified these losses publicly: in its 2024 Financial Statements, it highlighted exchange losses of GH¢1.82 billion directly linked to G4O as a key factor driving its overall operating loss of GH¢9.49 billion for the year .
The Bank noted that the G4O-related losses stemmed from the programme’s exposure to currency fluctuations and commodity market volatility, compounded by the cost of using gold to finance fuel imports under an unstable macroeconomic environment.
Breakdown of G4O’s Financial Impact
The GH¢1.82 billion loss represents a significant deterioration from the GH¢317 million loss recorded in 2023, when the programme was still in its early phase.
According to BoG’s own reporting, the cumulative financial exposure under the programme amounted to GH¢4.69 billion in seed capital by December 31, 2024, a sizeable commitment that ultimately proved unsustainable.
The High Street Journal’s study of the Bank’s financial statement revealed that the Board of Directors had on March 13, 2025, reached a consensus that continuing with G4O would further expose the institution to untenable fiscal risks.
The statement quoted the Bank as saying, “in view of the material losses sustained, the Board of Directors at its meeting held on March 13, 2025, approved the Bank’s withdrawal from the program.”
The G4O losses were a significant driver behind the Board’s decision to exit. The Bank could not continue absorbing losses at this scale
IMF Had Warned Earlier
The decision to withdraw also comes in the wake of strong warnings from the International Monetary Fund (IMF).
In May 2023, the IMF recommended that the BoG exit the programme, citing a lack of fiscal transparency and governance weaknesses.
An IMF Safeguards Assessment noted that the BoG Act would need to be reviewed to address the risks associated with the Gold Purchase and G4O initiatives.
The Fund also raised concerns about the impact of such quasi-fiscal operations on central bank independence and balance sheet health — concerns that now appear validated by the losses disclosed.
CSOs Pointed to Corruption Risks
In addition to financial risks, Civil Society Organisations (CSOs) in Extractives, Anti-corruption and Good Governance, led by Dr. Steve Manteaw had flagged potential corruption and governance risks in the programme’s design. The CSOs include the Natural Resource Governance Institute (NRGI), the Africa Centre for Energy Policy (ACEP), the IMANI Centre for Policy and Education, CSO Platform on Oil and Gas and Ghana Anti-Corruption Coalition.
In a statement, the CSOs warned of:
- Absence of clear buyer and supplier selection criteria
- Non-disclosure of pricing policies for both gold and petroleum
- Unclear transaction cost structures
- Lack of transparency on how the government was financing the gold purchases
The CSOs urged Parliament to ensure that such state-to-international transactions are properly approved under Article 181(5) of the Constitution.
“Parliament must examine the transaction and ensure that aspects falling within the realm of international transactions between the state and third parties are brought before the House for approval in accordance with Article 181(5) of the 1992 Constitution.” Dr Manteaw demanded.
