Ghana has since the commencement of commercial oil production in 2010, bagged a total US$4.1 billion as its entitlement including royalties and other revenue sources. This was realised from the sale of 253,085,873 barrels of crude oil.
The highest annual petroleum revenue receipt was recorded in 2014, earning US$978.01 million as against the lowest revenue of US$247.18 million in 2016 with price variations on the crude oil market attributed to the poor oil revenue income in 2016.
The receipts comes from various components comprising: Royalties (5-12.5%): surface rentals: corporate tax of 35%: carried and participating interest (15% minimum); as well as other avenues such as bonuses, licensing fees and additional entitlements which constitute the sources of petroleum revenues to the state.
Distribution of the total oil revenue realised between 2011 and 2017 was: US$1.6966 billion to Annual Budget Funding Amount (ABFA); US$1.2393 billion to GNPC; US$776.54 million to the Ghana Stabilisation Fund (GSF); and US$323.72 million to the Ghana Heritage Fund (GHF).
According to the Public Interest Accountability Committee’s (PIAC) report, allocations to the various areas are slightly higher than receipts because of the transfers from the GSF to ABFA.
Speaking at a public forum at Bechem in the Tano South Municipality of the Brong Ahafo Region, PIAC’s Chairman Dr. Steve Manteaw said the four priority areas government where selected to spend ABFA (2011-2016) were: agricultural modernisation, debt amortisation, capacity-building and roads & other infrastructure. He however indicated that there were some allocations outside the four designated areas.
“These included the GH¢5million and GH¢10million financial support to the Venture Capital Fund in 2012 and 2013 respectively; GH¢35million to MASLOC in 2011; GH¢2million to MUSIGA for research in 2011; GH¢2million recapitalisation for Exim Guarantee Company Ghana in 2012; and GH¢556,655 printing & transportation of stationery to seven regions in 2013,” Dr. Manteaw stated.
PIAC, he noted, is concerned about the use of petroleum revenues to cover too many areas, especially outside the four priority areas.
“This has weakened the potential impact of oil revenues on the socio-economic development of Ghana. Only 11% of petroleum revenue has been allocated to the agriculture sector, which is the mainstay of the economy,” he said.
Dr. Manteaw renewed calls for government to invest petroleum revenues in only a few ‘legacy projects’ – such as modernisation, agriculture and railway development.
The MCE for Tano South, Collins OffinamTakyi, in his remarks proposed the establishment of more ‘sister’ independent bodies like PIAC to supervise the utilisation of revenues from all natural resources.