Government’s debt to the Ghana National Petroleum Corporation (GNPC) has reached $1.25 billion by the end of December 2024, raising fresh concerns about the financial health of the state-owned oil company.

This alarming figure, revealed in the latest report by the Public Interest and Accountability Committee (PIAC), has triggered strong disapproval from the watchdog body regarding the government’s reliance on GNPC for funding.

The government’s debt to GNPC has been building up over the years, with the most recent data showing that a cumulative $318.09 million has been owed to GNPC and its associated agencies since 2011.

Of this, $126.68 million was revenue that GNPC could not recover from loans and guarantees, as detailed in PIAC’s 2021 annual report.

Despite PIAC’s urging to intensify efforts to recover these debts, the latest report indicates that the amount owed has substantially increased.

PIAC had advised GNPC to stop issuing new loans and guarantees until significant repayments were made, citing the growing debt as a potential threat to the Corporation’s work programme.

However, the continued reliance on GNPC for financing and the issuance of additional guarantees have pushed the debt figure up to $1.25 billion by December 2024.

The PIAC has once again urged the government to urgently pay off the outstanding amounts to secure GNPC’s financial sustainability and prevent further strain on the Corporation's resources.

Without significant debt recovery and repayment, the Corporation may face challenges in maintaining its operations and fulfilling its obligations.