The Natural Resource Governance Institute (NRGI) a Civil Service Organization (CSO), has cautioned the government against hastily granting tax concessions to Atlantic Lithium for its Ewoyaa Lithium Project, stressing that Ghana risks losing substantial revenue if due diligence is not rigorously applied.
The call comes as Parliament prepares to ratify the final fiscal terms of the mining lease agreement, originally signed in October 2023 but never formally ratified by lawmakers.
However, Atlantic Lithium is seeking revised fiscal terms in response to falling global lithium prices, a move that has sparked fresh debate over the country’s mineral revenue strategy.
In an interview, Dennis Gyeyir, NRGI’s Country Manager for Ghana, warned that any fiscal adjustments should be based on independently verified data rather than relying solely on figures supplied by the company.
He underscored the need for a flexible and responsive tax regime that protects Ghana’s economic interests both in the short and long term.
“Any tax relief should not be granted without robust checks,” Gyeyir said. “Ghana could forfeit significant revenue if concessions are awarded without scrutiny. Any decision must be strategic and not amount to blanket tax breaks.”
He proposed a dynamic tax model that scales with global lithium prices, tightening when prices rise and loosening when they fall, to ensure equitable returns for the country. “We need a regime that adapts to market conditions while safeguarding national revenue,” he added.
NRGI also emphasized the need for full transparency in the company’s cost assumptions and insisted that any renegotiated fiscal terms must be anchored in evidence.
“The government must not accept corporate claims at face value. Independent assessments are essential,” Gyeyir stressed.
The Institute further called on the government to preserve community benefits included in the original agreement, such as local equity participation and compensation commitments.
“The community share must not be diluted. It is one of the few mechanisms that guarantee direct local benefit,” Gyeyir said.
In addition, NRGI urged lawmakers to tighten the tax and regulatory framework by including clauses that prevent transfer pricing and enforce stringent cost control measures in any amended agreement.
The debate has gained urgency following confirmation by Lands and Natural Resources Minister Emmanuel Armah-Kofi Buah during a parliamentary session on July 16 that Cabinet had approved negotiations on the revised fiscal terms.
He reiterated the government’s view that the Ewoyaa Lithium Project has the potential to generate jobs and boost economic activity, especially in the Central Region where the project is located.
Atlantic Lithium is currently in discussions with the government to align the fiscal parameters of the lease with today’s market realities, arguing that the original terms were based on now-outdated lithium price forecasts.
The company maintains that adjusting the terms will ensure the project’s viability and sustained mutual benefits.
However, NRGI warns that while adapting to global price shifts is reasonable, fiscal discipline and transparency must remain paramount.
“Ghana must learn from past experiences and avoid locking itself into unbalanced agreements. A well-regulated, flexible, and transparent fiscal regime will deliver value for both the investor and the nation,” Gyeyir added.
