Ghana energy debts: $1.47bn paid to clear legacy bills

Ghana’s government paid $1.47 billion in 2025 to clear legacy debts in the energy sector, the finance ministry said on Monday, describing the move as part of efforts to restore stability in the power system and rebuild confidence with lenders and suppliers. The power sector has faced mounting unpaid bills that authorities have linked to more frequent outages, according to Reuters.

Ghana energy debts and the 2025 clearance package

The finance ministry said disciplined financial management made it possible to settle long-standing obligations, while also making budget provisions intended to keep future payments on schedule. It said the government’s objective was to end what it described as a pattern of “uncontrolled” debt accumulation in the energy sector. President John Dramani Mahama had previously pledged to reduce about $2.5 billion owed to independent power producers and gas suppliers.

World Bank guarantee restored

As part of the package, the ministry said the government repaid more than $597 million to the World Bank, fully restoring a partial risk guarantee tied to gas supplies from the Offshore Cape Three Points field.

The guarantee, established in 2015, was designed to protect nearly $8 billion in private investment in Ghana’s energy sector, the ministry said, adding that its depletion had weakened the country’s credibility with international partners.

Payments to gas suppliers and power producers

The finance ministry said Ghana paid about $480 million to Italian energy company ENI and commodities trader Vitol to settle outstanding gas invoices linked to electricity generation through the Sankofa Gas Project.

It also said the government cleared about $393 million in legacy debts owed to independent power producers, including $120 million to Turkey’s Karpowership and $59.4 million to Cenpower Generation.

Independent power producers said separately that the payments marked a milestone toward restoring financial stability and operational confidence across the sector.

Renegotiations and next steps

The finance ministry said the government has renegotiated agreements with independent power producers and is working with Tullow Oil and Jubilee Field partners on a roadmap for gas payment obligations.

It said Ghana aims to increase domestic gas production and reduce reliance on more expensive liquid fuels as it seeks to strengthen power supply and contain future debt pressures