Energy Minister, Dr. John Abdulai Jinapor, has revealed that the Electricity Company of Ghana (ECG) is burdened with a debt of GHS 67 billion as of March 2025, describing it as a pressing concern for the country’s energy sector.
Speaking on the floor of Parliament on Wednesday, June 4, Dr. Jinapor responded to a question from the Member of Parliament for Keta, Kwame Dzudzorli Gakpey. The Minister acknowledged the scale of the financial strain ECG is facing but pointed out that the amount has seen a slight dip in recent months due to exchange rate gains.
“The total indebtedness of ECG, as it stands, as at March 2025 is GHS 67 billion,” Dr. Jinapor told lawmakers.
While the figure is staggering, the Minister was quick to assure the House that government is taking decisive action to stem the tide and reposition ECG for financial stability.
He outlined a broad set of measures, beginning with aggressive revenue reforms aimed at plugging leakages and improving collections.
“We want to work to increase revenue and also reduce losses,” he said, adding that the Ministry is rolling out performance agreements with ECG’s district and general managers. The goal, he explained, is to make officials directly accountable for the operational and financial health of their regions.
Further, the Minister announced that government is considering private sector involvement in ECG’s billing and collection systems, a move seen by some as a step toward greater efficiency, and by others as a possible prelude to deeper privatisation.
Dr. Jinapor also revealed ongoing negotiations with Independent Power Producers (IPPs) to revisit the terms of costly power purchase agreements and contracts that many energy analysts have long pointed to as unsustainable.
The revelation comes at a time when Ghana’s energy sector is grappling with long-standing financial imbalances, frequent operational hiccups, and public outcry over power reliability.
With ECG playing a central role in electricity distribution across the country, its financial woes have a ripple effect across the entire power chain from generation to transmission.
Observers say the success of the Minister’s proposed strategy will hinge on swift implementation, political will, and the cooperation of stakeholders at all levels.
