Amid the debate following the government’s decision to channel a larger portion of the country’s oil revenues to finance its ambitious Big Push Agenda, policy analyst and natural resource governance expert Dr. Steve Manteaw has thrown his full support behind the move.
The Co-Chair of the Ghana Extractive Industry Transparency Initiative is convinced that the move makes economic sense.
Dr. Manteaw further argues that Ghana’s resource rents should be treated as seed capital, not pocket money. For him, the country’s oil revenues must work for the country, not feed a culture of consumption.
This praise from the policy analyst follows the government’s decision to amend the Petroleum Revenue Management Act (PRMA) to legally channel a greater portion of the Annual Budget Funding Amount (ABFA) into capital expenditure.
The proposal has been debated and passed by parliament.
Amid the debate, Dr. Manteaw says, “It makes economic sense to invest the bulk of our resource rents in capital projects rather than recurrent items.”
Citing evidence to back his stance on the issue, he mentioned that the $30 million investment by the erstwhile NDC administration in Terminal 3 of the Kotoka International Airport has already yielded more than $10 million in returns, representing a whopping 33% return on investment.
“Imagine if we had invested a billion in a similar project,” he noted.
Move Correct Wrongs of the Past
Dr. Manteaw did not spare past governments in his critique. He disclosed that the previous administration consistently breached the legal requirement under the PRMA, which mandated that at least 70% of ABFA be allocated to capital projects.
In contrast, he expressed satisfaction that the current amendment not only respects this minimum threshold but also pushes to exceed it. This, he says, signals that the government may finally be placing bricks where its mouth is.
“This legal requirement was breached by the previous government almost throughout its tenure. I’m happy the NDC wants to go beyond the 70% benchmark,” he added in a reaction cited by The High Street Journal.
Stabilization and Heritage Funds Still Intact
Addressing concerns that the decision may dissipate critical petroleum funds such as the stabilization and heritage funds, Dr. Manteaw was quick to set the records straight.
He clarified that only the ABFA, the portion of oil revenue allowed by law to be spent through the budget, is affected. The Stabilisation Fund, Heritage Fund, and Sinking Fund remain intact, shielded from executive discretion and untouched by the amendment.
“The Heritage Fund, the Stabilisation Fund, and the Sinking Fund are not affected by the amendments,” he insisted.
The Bottomline
For Dr. Manteaw, investing in productive assets like infrastructure and logistics hubs has a ripple effect that lifts the broader economy such as creating jobs, attracting private investment, and reducing import dependency.
With natural resources being finite, the decisions we make today determine the shape of tomorrow’s Ghana.
Dr. Manteaw’s call is not merely a nod of approval; it is a charge to policymakers to rise above partisan frills and ensure Ghana’s oil works for the good of the country and it citizens, but not just flows.
