Energy Minister cuts ECG’s budget amid GHC 80 Billion sector debt

The Minister of Energy and Green Transition, John Jinapor, announced a budget cut for the Electricity Company of Ghana (ECG). The allocation was reduced from GH₵500 million to GH₵250 million.

This decision comes after reports of missing containers at the port. It also follows growing financial challenges in the energy sector.

In Parliament, Jinapor highlighted the urgent need to address an GH₵80 billion debt crisis. He warned that failure to act could lead to the sector's collapse. “We must pay the power producers,” he stated.

He noted that ECG had a 2023 allocation of GH₵935 million for procurement. However, the company overspent by GH₵7.3 billion due to excessive cable purchases.

This overspending has caused revenue shortages. As a result, ECG is struggling to clear its containers at the port.

Jinapor’s budget cut aims to settle debts owed to power producers. It also seeks to ensure stability in Ghana’s energy supply.

However, this reduction may create further operational difficulties for ECG. The company is already facing challenges managing its finances.