President John Dramani Mahama has disclosed that the previous Akufo-Addo administration left behind a staggering GH¢70 billion debt in Ghana’s energy sector, deepening financial instability and threatening the country’s power supply.
Delivering his first State of the Nation Address (SONA) on Thursday, February 27, 2025, Mahama criticized what he described as the mismanagement and misuse of the Energy Sector Levy Act (ESLA), a fund originally established to clear energy sector debts and ensure financial stability.
“The ESLA was meant to cover the sector’s liabilities, ensuring a sustainable energy industry,” Mahama stated. “However, instead of serving its intended purpose, it has been mismanaged, leaving the sector in a dire financial state.”
He explained that the ballooning debt has severely impacted electricity generation, distribution, and investment in the energy sector, making it harder to meet growing demand and maintain reliable power supply.
Mahama warned that if immediate action is not taken, the financial strain on the energy sector could lead to further disruptions, including potential power shortages.
His administration, he assured, will prioritize transparency and accountability in managing energy revenues and work toward comprehensive reforms to stabilize the sector and prevent future mismanagement.