Fourteen years after commercial oil production began in Ghana, the nation has earned approximately US $11.58 billion, yet many citizens question whether the long-promised transformation has materialised.

Key Revenue and Allocation Facts

Under the Petroleum Revenue Management Act (PRMA) of 2011, all petroleum income first flows into the Petroleum Holding Fund (PHF) before being distributed.

Of the cumulative oil revenue since 2011:

• Ghana National Petroleum Corporation (GNPC) has received about US $3.15 billion for operations and exploration.
• The Ghana Stabilisation Fund holds roughly US $2.6 billion, intended to buffer fiscal shocks.
• The Ghana Heritage Fund, meant for future generations, has accumulated about US $1.1 billion and now holds approximately US $1.3 billion.
• The largest share has been channelled through the Annual Budget Funding Amount (ABFA) — about US $4.5 billion since 2011 — which feeds into the national budget and is the primary way ordinary citizens may feel the impact of oil revenue.

Examples of Expenditure

ABFA resources have funded visible projects such as:

• The new Terminal 3 at Kotoka International Airport
• The Kojokrom–Tarkwa railway
• Coastal protection works at Axim
• The Tamne irrigation scheme
• The Atuabo Gas Processing Plant
• The Free Senior High School (Free SHS) programme

What Has Not Been Achieved

Despite these investments, the expected broad-based economic transformation remains elusive.

Many Ghanaians report minimal change in poverty or inequality.

There is still no long-term national development plan approved by Parliament to specifically guide how oil revenues should be used. This has led to a patchwork of projects, bottlenecks, and cost overruns.

Falling oil production and receipts have further compounded the issue. For example, in the first half of 2025, oil-sector receipts dropped to about US $370 million, less than half the figure from the previous year.

Shifting Priorities

In the 2025 budget, authorities directed 95% of ABFA funds into the “Big Push” road-construction programme, with only 5% going to the District Assemblies Common Fund — showing a tighter focus on one sector rather than diversified investment.

Why It Matters

Ghana’s oil revenue governance was once cited as a model for transparency in Africa. However, with falling production, weaker revenues, and increased fiscal pressures, the effectiveness of the system is increasingly under scrutiny.

The contrast with models such as Norway’s — where oil revenues go largely into a sovereign wealth fund and only limited withdrawals are permitted — highlights the different outcomes.

Conclusion

Ghana’s oil money has built tangible infrastructure: airports, gas-processing plants, roads, and schools. But the broader promise — turning oil wealth into widespread, sustained economic transformation — remains a work in progress. As the oil sector enters a new phase of global transition, the key question is: Will Ghana’s systems adapt so that future revenues deliver the impact the people expect?