Government to cough up $1.1bn this year to pay ENI

The government needs to raise $1.1 billion in 2025. This amount is for payments owed to ENI for gas supply. It includes monthly invoices, Letter of Credit (LC) replenishments, and outstanding arrears.

This information came out during a meeting with Finance Minister Dr. Cassiel Ato Forson, Energy Minister John Jinapor, and ENI officials. The government reaffirmed its commitment to maintaining a steady gas supply. However, the energy sector faces growing financial strain.

Dr. Forson explained that the large debt burden stems from the previous government's failures. This has left the current administration with no choice but to clear old debts while making new payments.

“Our monthly energy costs are GH¢2.5 billion,” Dr. Forson said. “Fuel and power generation alone cost GH¢1.9 billion.” He noted that ECG collects only GH¢1.3 billion, creating a shortfall of GH¢1.2 billion each month.

To tackle this issue, GNPC, the Energy Ministry, and the Finance Ministry will review the energy sector this week. They aim to assess liabilities and find a sustainable solution.

Dr. Forson expressed frustration over the inherited debt but remains committed to stabilizing the sector. He emphasized that clearing arrears is essential for reliable energy supply.

“The burden is heavy,” he stated, “but we will not shy away from our responsibilities.” He added that Ghanaians must understand they are paying for past mistakes now.