Professor John Gatsi, the Advisor at the Bank of Ghana, has outlined the allocation of Ghana’s petroleum revenue, highlighting the distribution process managed through the petroleum holding fund. According to him, after the Ghana National Petroleum Corporation (GNPC) receives its share, the remaining oil revenue is divided into three main categories: investment costs, the Annual Budget Funding Amount (ABFA), the Stabilization Fund, and the Heritage Fund.
While funds allocated to the ABFA and Stabilization Fund require parliamentary approval for access, the Heritage Fund’s accumulated interest remains inaccessible until after September 2026, as stipulated by Act 815. Importantly, the Act prohibits the use of the principal of the Heritage Fund at any time, ensuring the preservation of the core capital.
He said in recent developments, the Minister of Finance proposed that the entire ABFA be directed towards infrastructure projects. This proposal received parliamentary approval, allowing the government to focus on infrastructural development using oil revenues. Additionally, Act 815 grants the Minister the authority to utilize a portion of the Heritage Fund’s accumulated interest, but only following approval from Parliament.
According to him, this strategic allocation aims to balance immediate infrastructural needs with long-term financial stability, reinforcing Ghana’s commitment to prudent management of its oil revenue.
