Ayensu: Managing Ghana's Oil Revenue: Ghana's Petroleum Funds (Gpfs)

ABSTRACT:

Petroleum receipts, for most oil dependent economies, constitute the major source of revenues for the government. These large revenues stream are effectively managed through the vehicle of Sovereign Wealth Funds (SWFs) as practiced by oil-producing nations such as Saudi Arabia, Qatar, United Arab Emirates (UAE) and then invested in strategic developmental sectors of the economy. The creation and management of SWFs falls within the responsibility of the Government of Ghana as the sole stakeholder entrusted by the Petroleum Revenue Management Act (PRMA), 2010 to ensure transparency and accountability in petroleum revenues. PRMA makes provisions for the creation of two SWFs entitled Ghana Petroleum Funds (GPFs) which are Ghana Stabilization Fund (GSF) and Ghana Heritage Fund (GHF). GSF exist to smooth out budget imbalances due to global oil price volatility while GHF aims to provide income for future generations when oil reserves would be depleted. The paper, therefore, examines and assesses Oil & Gas (O&G) revenues received and managed by the Government of Ghana in accordance with the Petroleum Revenue Management Act, 2010. The paper begins with an exposé on Sovereign Wealth Funds (SWFs) as an instrument for better accountability and transparency in Oil & Gas revenue management. The paper then discusses and analyzes petroleum receipts and allocation by the Government of Ghana and its investments in strategic sectors of the economy through Ghana Stabilization Fund and Ghana Heritage Fund.

 

Available for download here.