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.
