Bawumia’s Gold for Oil Programme withdrawn by BoG after GH¢1.82bn loss

The Bank of Ghana has withdrawn from Dr. Mahamudu Bawumia’s Gold for Oil program. This decision follows a loss of GH¢1.82 billion.

The program aimed to use gold to buy oil. It was designed to ease pressure on foreign exchange reserves. Bawumia promoted it as a way to stabilize fuel prices.

Reports indicate the decision occurred during a board meeting on March 13, 2025. The Bank recorded a GH¢1.82 billion loss in 2024. This is nearly 500% higher than the GH¢317 million loss in 2023.

Dr. Johnson Asiama, the governor of the Bank, had previously suspended the program. There are claims that the Gold for Oil initiative suffered a $90 million loss. A licensed company involved allegedly disappeared with funds meant for gold purchases.

These issues reportedly surfaced during transition meetings when the Mahama administration took office. Additionally, the Bulk Oil Storage and Transportation Company Limited (BOST) is implicated in financial mismanagement related to this program.

Despite these challenges, Dr. Bawumia defends the program's success. He argues that without it, Ghana’s economy would have collapsed. In an interview on August 25, 2024, he stated that the economy relied heavily on this initiative.

BoG's losses highlight significant financial concerns within this program and its management.