Oil-Funded Projects Show Major Defects Across Ghana

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Ghana Oil Gas
Oil Gas

Ghana’s petroleum revenue watchdog has uncovered significant defects and delays in government-funded infrastructure projects following recent inspections across eastern and northern regions, raising fresh questions about development spending transparency.

The Public Interest and Accountability Committee (PIAC) conducted simultaneous inspections from June 22-27, 2025, examining petroleum-funded projects in Upper Manya Krobo, Asuogyaman, Yendi, and Mion districts under its mandate to monitor petroleum revenue use.

The findings reveal a troubling pattern of incomplete works, missing infrastructure, and quality concerns across multiple projects funded through the Annual Budget Funding Amount, which allocates petroleum revenues for development priorities.

Eastern Region Reveals Mixed Results

In Upper Manya Krobo, a rural market project allocated GH¢169,516.27 in 2024 showed completed sheds and warehouse facilities, but the planned mechanised borehole was entirely missing. Water leakages and algae growth in existing facilities raised immediate health and safety concerns for market users.

The Mensah-Dawa-Apimsu-Asesewa Feeder Road Project painted a starker picture. Despite receiving GH¢1 million in funding, only drainage work was completed with no road surfacing undertaken and no contractor present at the site during inspection.

However, not all projects disappointed. The Kwanyako-Asuogyaman CHPS Compound, which received GH¢2.6 million between 2020 and 2023, was fully operational and commended by inspectors for its quality construction and community impact.

Northern Region Shows Systematic Problems

The Northern Region inspection uncovered more concerning discrepancies between official records and ground reality. The Gamandze-Paansiya Link Road in Yendi, funded with GH¢992,851.93, showed only basic earthworks despite official records indicating complete surfacing and culvert installation.

More troubling was the Yendi-Saboba Road situation, where GH¢4.4 million in allocated funding has apparently yielded little lasting benefit. Local residents reported the road has been abandoned since 2019, with severe deterioration making transportation difficult for communities dependent on agricultural trade.

In Mion District, two small dams constructed in Nanvili and Sakoya for GH¢626,725.44 in 2019 displayed structural defects including inadequate embankments, erosion damage, and poor excavation work. The problems are particularly acute at Sakoya dam, which serves critical irrigation and domestic water needs for local farmers.

Accountability Questions Mount

These inspection results highlight ongoing challenges in Ghana’s petroleum revenue management system, established to ensure oil and gas revenues translate into tangible development benefits for ordinary citizens.

The committee’s findings come amid broader concerns about project implementation efficiency and the need for stronger oversight mechanisms to prevent waste of petroleum revenues that represent a crucial development financing source for the West African nation.

PIAC has pledged to intensify monitoring activities and continue publishing statutory reports while engaging communities about petroleum-funded investment impacts. The committee’s mandate under the Petroleum Revenue Management Act requires regular assessments to ensure transparent and accountable use of oil revenues.

For communities in the affected regions, these project delays and defects represent missed opportunities for improved infrastructure that could boost local economies and living standards, particularly in rural areas where such investments often provide the primary source of modern facilities.

The inspection findings will likely inform PIAC’s upcoming statutory report to Parliament and could trigger broader discussions about strengthening project implementation oversight and contractor accountability in petroleum-funded development initiatives.

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