The Institute of Economic Affairs (IEA) Ghana has rejected the proposed truncated sliding-scale mineral royalty regime, calling instead for a fundamental overhaul of Ghana’s mining policy anchored on full national ownership of mineral resources.
The Institute described the proposed royalty framework as a continuation of outdated colonial-era structures that allow the export of Ghana’s mineral wealth while delivering limited benefits to citizens.
The call was made by former Chief Justice and Distinguished Fellow of the IEA, Madam Sophia Akuffo, at a press conference in Accra on Tuesday.
The proposed regime, contained in the draft Minerals and Mining (Royalty) Regulations, 2025 currently before Parliament, maintains a royalty-based system through either a graduated sliding scale or a capped royalty structure across the mining sector.
Under the proposal, royalties for gold and lithium would range from five to 12 percent, while a flat five per cent rate would apply to minerals such as diamonds, bauxite, manganese, salt, limestone, and iron ore.
A sliding-scale royalty system adjusts payments made by mining companies to the state in line with global commodity prices, with rates rising when prices increase and falling when prices decline.
Referencing a Reuters report dated January 15, 2026, the IEA also raised concerns about comments by the Acting Chief Executive Officer of the Minerals Commission, Mr. Isaac Tandoh, who indicated that a draft bill expected before Parliament by March 2026 seeks to introduce a nine to 12 per cent sliding-scale royalty regime.
According to the IEA, this position is inconsistent with President John Dramani Mahama’s stated views on natural resource governance.
The Institute noted that the President has repeatedly emphasised the need for Ghana to exercise sovereignty over its natural resources to generate sustainable wealth and prosperity for its citizens.
The IEA cited several occasions where President Mahama articulated this position, including the opening of the National Economic Dialogue on March 3, 2025, his address to the 80th Session of the United Nations General Assembly, and his remarks at the World Economic Forum in Davos on January 22, 2026.
“For us at the IEA, the President’s position demonstrates a clear commitment to reforming the mining sector primarily for the benefit of Ghana,” Madam Akuffo said.
She argued that while the President has signalled a shift towards deeper reforms, the Ministry of Lands and Natural Resources continues to promote what the Institute described as a colonial royalty-based paradigm, reflecting what it termed a lingering policy contradiction.
The IEA stressed that Ghana must retain full ownership of its mineral resources at all times and engage private sector expertise both local and foreign strictly through service contracts that preserve national control and maximise benefits for industrial transformation.
Madam Akuffo noted that national ownership of natural resources has been successfully implemented in countries such as Norway, Botswana, Chile, Burkina Faso, Niger, Mali, and several members of the Organization of the Petroleum Exporting Countries (OPEC).
The Institute maintained that full national ownership and effective resource management would generate financial, economic, and national security benefits far exceeding what royalty-based systems under foreign-dominated arrangements could deliver.
“Ownership creates opportunities for value addition, higher revenues, and increased foreign exchange inflows,” Madam Akuffo said, adding that it also ensures secondary benefits such as job creation, technology transfer, community development, and long-term structural transformation of the economy.
