Benjamin Nsiah Commends Government for Settling Energy Sector Debt, Calls for Cost-Reduction Measures
Story by: Richmond Obeng
The Executive Director of the Center for Environmental Management and Sustainable Energy (CEMSE), Mr. Benjamin Nsiah, has commended the Government of Ghana for settling an energy sector debt amounting to US$1.47 billion, describing the move as a significant step toward stabilising the country’s power sector.
Speaking in a Zoom interview with Kojo Preko Dankwa on Kesben FM’s morning show, Maakye, Mr. Nsiah explained that the accumulation of the energy sector debt dates back to power purchase agreements (PPAs) signed around 2015, which placed heavy financial obligations on the state.
According to him, the Energy Sector Recovery Programme (ESRP) Report identifies several contributors to the debt, including the overpricing of power contracts, oversubscription of some gas supply agreements, weak revenue mobilisation systems, the failure of government institutions to pay for electricity consumed, and the persistent depreciation of the cedi.
Mr. Nsiah highlighted the role of the current Finance Minister, Hon. Dr. Cassiel Ato Forson, noting that the debt was serviced at a relatively lower cost due to improved currency management.
“The current Finance Minister used about GH¢15 billion to service the energy sector debt, compared to about GH¢30 billion under the previous administration, largely because of the depreciation of the cedi at the time,” he stated.
He further praised the government for renegotiating existing power contracts in a manner that protects the interest of the Ghanaian people and reduces future financial burdens.
Looking ahead, Mr. Nsiah urged the government to demonstrate stronger commitment to meeting its electricity obligations, particularly by ensuring that state institutions pay for the power they consume.
“In the 2027 Budget, all government agencies and ministries must make specific budgetary provisions for electricity and ensure that payments are made promptly,” he admonished.
He also called on public institutions to adopt energy conservation practices to minimise wastage and reduce overall costs, stressing that prudent energy use is critical to sustaining the gains made in clearing the sector’s debt.
