The Public Interest and Accountability Committee (PIAC) has called on government to take urgent steps to correct a five-year breach of the Petroleum Revenue Management Regulations governing the Ghana Stabilisation Fund (GSF).
The Committee said the breach, which has persisted since 2021, undermines the effective management of petroleum revenues and the country’s fiscal resilience against oil market shocks.
Speaking at a media briefing at the launch of the 2025 Semi-Annual Report on the Management and Utilisation of Petroleum Revenue, Odeefuo Amoakwa Buadu VIII, Vice Chair of PIAC, said the government must comply with Regulation 8 of Legislative Instrument (L.I.) 2381, which provides the formula for determining the GSF cap.
He explained that under the law, the current cap of US$100 million should be revised to US$584.22 million in line with petroleum revenue inflows and fiscal requirements.
“The closing balance of US$122.91 million may not be adequate when the country faces a serious economic challenge and will need to rely on this Fund to survive,” Odeefuo Amoakwa Buadu said.
He reminded government that the primary purpose of the Stabilisation Fund is to provide a buffer in times of unanticipated shortfalls in petroleum revenues or economic shocks that require emergency fiscal support.
According to PIAC’s latest report, a total of US$44.5 million, representing 70 percent of the disbursement to the Ghana Petroleum Funds (GPFs) for the period under review, was paid into the GSF in line with the Petroleum Revenue Management Act (PRMA).
This amount represents 25.87 percent of the projected allocation to the GSF and 48.78 percent of disbursements made during the same period in 2024.
Since its inception, the GSF has received a cumulative inflow of US$2.6 billion in petroleum receipts. The Fund, together with the Ghana Heritage Fund (GHF), constitutes the Ghana Petroleum Funds, established to promote fiscal stability and safeguard future generations.
The Ghana Stabilisation Fund serves as a contingency mechanism to cushion the national budget during revenue shortfalls, while the Heritage Fund acts as an endowment for intergenerational equity.
PIAC noted that both Funds are invested in financial instruments under a strong risk management framework implemented by the Bank of Ghana’s Risk Management and Compliance Unit, which continuously monitors adherence to investment rules.
The Committee reiterated its call for stronger compliance with the PRMA and timely revision of the GSF cap to enhance Ghana’s ability to withstand future fiscal shocks.
