Deputy Minority in Parliament, Emmanuel Armah Kofi Buah, is advocating for a comprehensive review of the Petroleum Revenue Management Act (PRMA) to ensure a fair distribution of oil revenues to regions contributing to the extraction of resources.
In an interview in Parliament on Tuesday, Buah emphasized the need for strategic investments in substantial projects over the next decade to leave a lasting legacy for Ghana’s oil sector.
He expressed concern over the current distribution of oil revenues and called for fairness, stating, “I call for fairness in the distribution of the oil revenues to where the oil resources come from.”
“It is only fair because when you develop the Western Region, you are developing Ghana, and you are really developing where most of the resource comes from.”
He highlighted the existing provisions of the PRMA, including the establishment of the Heritage Fund for the benefit of future generations and the stabilisation fund for emergencies.
However, Buah noted that a significant portion of the Annual Budget Funding Amount (ABFA), approximately 70%, lacks clear guidelines on how it should be utilized.
“Exactly where have we used the oil money after all these years of production? I’m sure everybody is thinking. We’re not sure,” Buah remarked, underscoring the importance of revisiting the issue and amending the PRMA to focus ABFA revenue solely on the development of legacy projects.
The Minority leader proposed a focused approach, saying, “In the next three years, we should amend the Petroleum Revenue Management Act to focus revenue from the ABFA solely on the development of big-ticket items.”
He suggested two specific projects for the next decade – railway development and the creation of the Ghana superhighway, connecting Half Assini to Bawku and all the way to Accra.
Mr. Kofi Buah stressed the need to create a network of highways across the country, facilitating seamless travel within two days.
He emphasized the importance of earmarking oil revenues for these specific projects, ensuring transparency and clarity on the utilization of Ghana’s oil money.
In a concerning development, the Petroleum Interest and Accountability Commission (PIAC) has reported a decline in production from Ghana’s three existing oil fields.
The report attributes the decline to the government’s inability to add new production fields and emphasizes the necessity of replenishing oil production.
The Minority leader underscored the urgency for the Akufo-Addo-led government to focus on developing the Pecan field, which has faced delays.
He deplored the government’s sloganeering with the country’s oil resources and yet not contributing additional production fields, despite extensive rhetoric on the matter.