Social Sciences and Humanities Open (Jan 2024)
A Stakeholder’s perspective of petroleum revenue management after a decade of upstream exploration and production activities in Ghana
Abstract
Petroleum revenue management in Ghana comes with its successes and challenges. The study evaluated the views of key industry players and informants from institutionally mandated agencies on the management and use of oil revenues, after 10 years of commercial production. The study used purposive and expert sampling techniques to select stakeholders, well versed with information on petroleum revenue management in Ghana. Key informants were from the Public Interest and Accountability Committee, Bank of Ghana, Ministry of Finance, Africa Centre for Energy Policy, Academia, and District Assemblies in the three Oil-producing districts in Ghana. The study used a qualitative approach in terms of data collection and analyses. Hence, semi-structured questionnaires were used to interview and elicit responses from the stakeholders. The data obtained was analysed using a thematic and descriptive format. The findings suggest that stakeholders share the view that transparency in the receipt and distribution of petroleum revenues has been ensured in the management and use of petroleum revenues in the past decade. However, accountability in the distribution of petroleum revenue is a challenge. Furthermore, the study indicates that petroleum revenues are volatile and not hedged against extreme global price shocks. Also, petroleum revenue distribution decision-making processes are done in a centralized and not a decentralied manner. Again, the finance minister has overly discretionary power over the capping of the Stabilisation Fund with fewer checks and balances from the legislature. This study therefore recommends a critical review and possible amendment of the Petroleum Revenue Management Act, for the Act to be more effective in ensuring accountability in the management of oil revenues in Ghana.
