The Minister of Energy and Green Transition, John Jinapor, has announced a 50% reduction in the budgetary allocation for the Electricity Company of Ghana (ECG), cutting it from GH₵500 million to GH₵250 million.
This decision follows reports of missing containers at the port and growing financial challenges in the energy sector.
Speaking on the floor of Parliament, Jinapor stressed the urgency of addressing the GH₵80 billion debt crisis in the energy sector, warning that failure to act could lead to its collapse. “We have reduced their budget from GH₵500 million to GH₵250 million.
Because we must pay the power producers. Today, the bill is over GH₵80 billion in the energy sector. If we don’t do something, this sector will collapse. As a minister, I am determined to do my bid no matter how difficult it is,” he said.
He revealed that in 2023, ECG was allocated GH₵935 million for procurement, but the company exceeded its budget by GH₵7.3 billion, primarily due to excessive cable purchases.
The financial strain caused by this overspending has led to revenue shortages, preventing the company from clearing its containers at the port.
Jinapor’s decision to cut ECG’s budget is aimed at settling debts owed to power producers and ensuring stability in Ghana’s energy supply.
However, with ECG already struggling to manage its finances, this budget cut could either enforce stricter financial discipline or create further operational difficulties in power distribution
