Energy and Green Transition Minister John Jinapor has announced a significant reduction in the Electricity Company of Ghana’s (ECG) budget allocation, slashing it from GH₵500 million to GH₵250 million.
The decision follows concerns over financial mismanagement, including reports of missing containers at the port due to unpaid clearance fees.
Jinapor revealed that in 2023, ECG was allocated GH₵935 million for procurement, yet the company overspent by an alarming GH₵7.3 billion, largely due to excessive cable purchases. This budget overrun has deepened ECG’s financial woes, exacerbating its revenue challenges and affecting its ability to settle debts owed to power producers.
Addressing Parliament, the minister assured lawmakers that measures were being put in place to prevent further mismanagement and stabilize ECG’s operations. He emphasized that the government remains committed to ensuring financial discipline within the power sector while working to sustain electricity supply across the country.
“We have reduced their budget from GHc500 million to GHc250 million. Because we must pay the power producers. Today, the bill is over GHc80 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 stated.
