News:
October 29, 2025
The Public Interest and Accountability Committee (PIAC) has cautioned government against spreading the Annual Budget Funding Amount (ABFA) too thinly across multiple infrastructure projects, a challenge that has historically weakened the impact of petroleum revenue investments.
According to PIAC, infrastructure development as a spending priority remains too broad and risks fragmentation if not well-targeted. The Committee recommends that government selects a few high-impact or legacy projects to be fully funded from start to completion with the ABFA, and appropriately brand them to demonstrate tangible use of petroleum revenues.
Mr. Richard Ellimah, Chair of PIAC’s Technical Sub-Committee, stressed during a virtual media engagement on the 2025 PIAC Semi-Annual Report that, “Government should avoid returning to the old pattern of thinly distributing ABFA resources. Labeling every expenditure as ‘infrastructure’ can result in thousands of scattered projects with little national visibility or impact. We must invest in a few transformative projects that citizens can identify as being funded with oil revenue.”
Mr. Ellimah further explained that, under the Petroleum Revenue Management Act (PRMA) before its amendment, the Minister for Finance could select up to four priority areas — and could have chosen only “infrastructure development” without necessarily amending the Act and incurring statutory costs.
The Committee also expressed concern that the latest amendment to the PRMA has removed the Ghana Infrastructure Investment Fund (GIIF) from ABFA funding, thereby depriving it of a key resource base. PIAC highlighted that GIIF’s US$30 million investment in the Kotoka International Airport Terminal 3 project in 2016 yielded a return of US$5.5 million between 2017 and 2019 — demonstrating the potential of well-targeted investments.
With the new legal changes, the Agenda 111 project — which received GH¢2.61 billion (US$248.89 million) in ABFA funding from 2021 to 2024 — will no longer receive allocations. PIAC therefore recommends that government commits additional ABFA resources to complete the project for the benefit of citizens.
The Committee further reiterated the need for Ghana to adopt a long-term, broad-based national development plan approved by Parliament to guide the consistent and strategic use of petroleum revenues, including the ABFA.
Meanwhile, the 2025 amendment to the PRMA (Act 1138) has also affected PIAC’s operational budget, which will no longer be funded by the ABFA. The GH¢4.6 million allocated for PIAC’s 2025 programmes represents just 21.43% of its approved budget and 41.07% of the funds approved in 2024 — a reduction that could hinder the Committee’s ability to effectively discharge its oversight mandate.
Established under Section 52 of the Petroleum Revenue Management Act, 2011 (Act 815) and amended in 2015 (Act 893), PIAC is a citizen-led oversight body mandated to:
Monitor and evaluate government compliance in the management and use of petroleum revenues;
Facilitate public dialogue on whether petroleum spending aligns with national development priorities; and
Provide independent assessments on petroleum revenue management to Parliament and the Executive.
Analysis
Targeted Investment: Government should narrow ABFA spending to a few transformative projects with measurable socio-economic impact.
Transparency in Branding: Completed ABFA-funded projects should be clearly branded to enhance public accountability.
Sustainable Planning: Parliament should expedite the development of a long-term national development plan to anchor petroleum revenue use.
Funding Stability for PIAC: Government must explore sustainable financing options to safeguard PIAC’s independence and capacity.
Kwaku Sakyi-Danso/Ghanamps.com