Corporate Income Tax (CIT) has become the largest contributor to Ghana’s petroleum revenue for the first time, accounting for 45 percent of total receipts in 2025, even as overall inflows into the sector declined sharply.
Data from the 2025 Annual Report on the Management and Use of Petroleum Revenue shows that out of total receipts of US$770.3 million paid into the Petroleum Holding Fund (PHF), CIT generated US$346.9 million, narrowly surpassing Carried and Participating Interest (CAPI), which contributed US$339.3 million, representing 44 percent.
Royalties accounted for 10.1 percent of total revenue, while surface rentals and interest on the PHF contributed less than one per cent, underscoring the growing importance of tax-based revenues in Ghana’s petroleum fiscal framework.
Despite CIT’s strong performance, total petroleum receipts fell significantly from US$1.36 billion in 2024, representing a 43.27 percent decline year-on-year.
Chairperson of the Public Interest Accountability Committee, Mr Richard Ellimah, attributed the drop partly to disruptions in revenue flows, particularly under CAPI, which has historically been a major contributor.
The report explained that a delay in the receipt of proceeds from a crude oil lifting at the SGN field impacted 2025 earnings. Although the lifting was executed in October 2025, payment was only received in February 2026 due to geopolitical sanctions involving the off-taker.
While CIT led revenue contributions in 2025, its performance still reflected a decline compared to the US$502.9 million recorded in 2024 the highest since petroleum production began indicating broader pressures within the sector.
Analysts say the shift toward CIT dominance highlights increasing reliance on taxation rather than direct production-linked revenues, raising questions about sustainability amid fluctuating oil output and global market uncertainties.
The report noted that total petroleum revenue accrued since 2011 now stands at approximately US$11.98 billion, with 2022 recording the highest annual inflows and 2016 the lowest.
This long-term trend underscores both the strategic importance of the petroleum sector to Ghana’s economy and its exposure to external shocks.
On the utilisation side, a significant portion of petroleum revenue continues to support government spending and national development priorities.
In 2025, the Ghana National Petroleum Corporation (GNPC) received US$107.89 million for equity financing costs and participating interest obligations.
Additionally, US$433.29 million was allocated as the Annual Budget Funding Amount (ABFA), reinforcing the sector’s role in financing public expenditure.
Meanwhile, US$229.22 million was transferred into the Ghana Petroleum Funds, split between the Stabilisation Fund and the Heritage Fund.
The Stabilisation Fund received US$160.47 million (70 percent), aimed at cushioning the economy against revenue volatility, while the Heritage Fund received US$68.77 million (30 percent) to support long-term savings for future generations.
The 2025 figures highlight both an evolving revenue structure and growing fiscal risks within Ghana’s petroleum sector.
With declining overall receipts and increasing dependence on tax revenues, experts say there is a need for prudent fiscal management, diversification of revenue sources, and strengthened oversight to ensure sustainability.
