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ECG’s outstanding liabilities currently stand at GH¢80 billion – John Jinapor

The Minister of Energy and Green Transition, Dr. John Abdulai Jinapor, has disclosed that the outstanding liabilities of the Electricity Company of Ghana (ECG) currently stand at approximately GH¢80 billion.

A liability refers to any financial obligation or debt that a business owes to external parties. Liabilities arise from past transactions or events and are typically settled over time through the transfer of money, goods, or services.

Describing the situation as alarming, Dr. Jinapor emphasised the urgent need for stringent reforms and intervention to prevent the state-owned power distribution company [ECG] from imminent collapse.

Speaking on the second day of the National Economic Dialogue on March 4, 2025, the minister stated, “It’s quite scary looking at the issues with ECG and the energy sector as a whole. Today, I received a briefing, and the outstanding debt liabilities so far amount to about GH¢80 billion, and they keep increasing.”

He further warned, “If we are to put the energy sector back on track today, we would need to raise GH¢80 billion to clear the outstanding liabilities. Clearly, that is unsustainable, but even more worrying is the mounting debt.”

The minister also revealed that the challenges extend beyond ECG’s existing debts. Currently, the total monthly bill within the power sector stands at approximately US$175 million, while revenue collection remains below US$100 million.

“If nothing is done, we will continue incurring about US$70 million in monthly shortfalls or liabilities, and for me, that is a major concern,” he warned.

To mitigate the situation, John Jinapor recommended several strategic measures, including; ensuring discipline and efficiency in the energy sector; encouraging private sector participation in managing the power distribution system; adopting a gas-to-power model to enhance energy supply and cost efficiency.

The Minister of Energy therefore urged swift implementation of these strategies to prevent further deterioration of the sector’s financial health.

The National Economic Dialogue is a high-level platform where government officials, policymakers, business leaders, and economic experts convened to discuss critical issues affecting the country’s economy.

The Dialogue aims to generate actionable solutions to place Ghana on a stable economic trajectory. Key recommendations from the discussions will inform government policies in the coming months.

Source: www.ghanaweb.com

Ogyem Solomon

Solomon Ogyem – Media Entrepreneur | Journalist | Brand Ambassador Solomon Ogyem is a dynamic Ghanaian journalist and media entrepreneur currently based in South Africa. With a solid foundation in journalism, Solomon is a graduate of the OTEC School of Journalism and Communication Studies in Ghana and Oxbridge Academy in South Africa. He began his career as a reporter at OTEC 102.9 MHz in Kumasi, where he honed his skills in news reporting, community storytelling, and radio broadcasting. His passion for storytelling and dedication to the media industry led him to establish Press MltiMedia Company in South Africa—a growing platform committed to authentic African narratives and multimedia journalism. Solomon is the founder and owner of Thepressradio.com, a news portal focused on delivering credible, timely, and engaging stories across Ghana and Africa. He also owns Press Global Tickets, a service-driven venture in the travel and logistics space, providing reliable ticketing services. He previously owned two notable websites—Ghanaweb.mobi and ShowbizAfrica.net—both of which contributed to entertainment and socio-political discussions within Ghana’s digital space. With a diverse background in media, digital journalism, and business, Solomon Ogyem is dedicated to telling impactful African stories, empowering youth through media, and building cross-continental media partnerships.

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