The Driver and Vehicle Licensing Authority (DVLA) has announced a reduction in the projected cost of its roadworthiness certificate service agreement from $155.4 million over three years to GH¢2 million, but differences in the currencies quoted and the savings calculation require further clarification.
The Chief Executive Officer of the DVLA, Mr Julius Neequaye Kotey, announced the revised agreement at the Government Accountability Series on Monday, October 12, 2026, describing it as part of efforts to reduce expenditure and improve the authority’s financial management.
Mr Kotey said the previous service-level agreement (SLA), which covered the 2023 to 2025 period, carried an annual projected cost of $51.8 million, bringing the total expenditure for the three years to $155.4 million.
He said the authority reviewed and renegotiated the arrangement, reducing the cost of the new agreement covering 2026 to 2028 to GH¢2 million.
“For the three years, we immediately reviewed the agreement, renegotiated, and reduced the SLA cost to 2 million Ghana cedis. That is from 2026, 2027, and 2028,” he said.
Mr Kotey further claimed that the renegotiation would generate annual savings of about $50 million.
“This translates to savings of about $50 million every year,” he said.
However, the financial implications of the revised agreement remain unclear because the previous cost was quoted in US dollars, while the new amount was stated in Ghana cedis.
The authority’s claim of annual savings of about $50 million also requires clarification, particularly regarding how the figure was calculated against a revised total cost of GH¢2 million for three years.
Details of the services covered by the agreement, the pricing structure and the methodology used to calculate the projected savings would help establish the full extent of the financial benefits to the authority.
The renegotiation comes as the DVLA seeks to demonstrate improved financial management through a review of its contractual obligations and operating costs.
