In a bold move to avert what it calls an impending crisis in Ghana’s power sector, the government has introduced a new GH¢1 levy on every litre of petrol, diesel, and related petroleum products.
The proposed levy, outlined in the Energy Sector Levy (Amendment) Bill presented to Parliament, is aimed at raising critical funds to address a staggering US$3.1 billion energy sector debt that Finance Minister Dr Cassiel Ato Forson says threatens the country’s economic stability.
“The power sector is the biggest economic and fiscal risk we face presently,” Dr. Forson warned lawmakers. “It could lead to a major crisis if we fail to confront it head-on.”
The Finance Minister explained that without immediate intervention, Ghana risks further fuel shortages, unpaid bills to independent power producers, and the collapse of financial guarantees, including a US$512 million World Bank IDA guarantee and a US$120 million GMPC guarantee—both of which are fully drawn down in 2024.
“To restore these guarantees alone, the government requires an additional US$632 million,” Dr Forson said, noting that an estimated US$3.7 billion will be needed to clean up the sector’s debt in total.
With the country’s growing reliance on thermal power generation, fuel costs have surged. Yet, current electricity tariffs do not fully account for these expenses. Including fuel costs in tariffs, the Public Utilities Regulatory Commission estimates could spike electricity prices by 50%—a burden the minister said households and businesses could not afford.
“In 2025 alone, we will need US$1.2 billion just to procure fuels for thermal power. The fiscal space cannot absorb this,” Dr Forson stressed.
To bridge the funding gap, Dr Forson proposed the GH¢1-per-litre levy, assuring Parliament that this would not cause a rise in fuel prices. “Simulations show there will be no increase in the ex-pump price of petrol and diesel in the current pricing window if this levy is imposed,” he said, crediting the stability of the Ghana cedi for absorbing any potential impact.
Opposition Cries Foul
The Minority, however, rejected the proposal outright, accusing the government of introducing what they described as a rebranded version of the controversial Electronic Transactions Levy (E-Levy), which was recently repealed.
“You said in your budget that you wouldn’t introduce new taxes,” Minority Leader Alexander Afenyo-Markin told the House. “You repealed the E-Levy, and now you’re reintroducing it under the guise of an Energy Sector Levy.”
Mocking the bill’s acronym, Afenyo-Markin quipped, “What is Energy Sector Levy, short form? E-Levy. Energy starts with ‘E’. The Hansard is watching, and one day, this precedent will come back to haunt you.”
He also criticised the Finance Minister’s assurance that the levy would have no financial impact, describing it as “misleading.”
Speaker Steps In, Majority Defends
First Deputy Speaker Bernard Ahiafor stepped in to calm tensions, clarifying that the proposed fuel tax bears no resemblance to the repealed E-Levy in either purpose or mechanism.
Majority Leader Mahama Ayariga also came to the bill’s defence, framing it as a collective sacrifice to prevent the return of power outages. “It is not E-Levy,” he said. “This bill simply asks Ghanaians to contribute GH¢1 per litre of fuel to help end dumsor. We all have a part to play in fixing the power sector.”
The bill has since been referred to the relevant parliamentary committee for further scrutiny and is expected to be passed shortly.
The Office of the Special Prosecutor (OSP) is set to press criminal charges against high-ranking officials of the National Petroleum Authority (NPA) over an alleged corrupt scheme involving more than GH¢280 million. The OSP will file the charges before the end of June.
The alleged offences occurred between 2022 and 2024, following months of investigation into the operations of the NPA. In February 2025, the OSP announced a probe into former NPA Chief Executive Mustapha Abdul-Hamid over the suspected embezzlement of GH¢1.3 billion from the Unified Petroleum Pricing Fund (UPPF). The investigation also targeted three other officials: Jacob Amuah, UPPF Coordinator; Freda Tandoh; and Wendy Ashong Newman.
At a press conference on Monday, June 2, Special Prosecutor Kissi Agyebeng confirmed that criminal charges would be filed against four senior officials of the NPA. Although he withheld names, he noted that investigations launched in November 2024 had uncovered widespread abuse of public office.
According to the OSP, officials at the NPA orchestrated a scheme using intimidation, bribery, regulatory pressure, and coercion to extract payments from oil marketing companies and other regulated entities. The illicit activities were reportedly carried out under the guise of licensing, monitoring, and regulatory duties in the petroleum downstream sector.
By tracing financial transactions, the OSP uncovered GH¢280,516,127.19, which is believed to be the proceeds from the scheme. Investigators found that part of this money was used to acquire properties in Ghana and abroad, including apartments, suites, and houses. Some funds were used to purchase 22 fuel haulage trucks, while others helped set up or acquire oil marketing companies. These new businesses then directly competed with the very firms the NPA officials were tasked with regulating.
The OSP said that the first round of charges would target both individual perpetrators and complicit companies. Once charges are filed, a full public briefing will follow, detailing the roles of each accused person, the assets acquired, and any recoveries made.
World Vision International has launched the THRIVE 2030 Project, a bold initiative aimed at enhancing household resilience and transforming the livelihoods of over 800,000 farmers across Ghana.
The launch followed the signing of a Memorandum of Understanding with six key partners: Fairtrade Ghana, Esoko, PANGEA Africa, Vision Fund Ghana, Ghana Commodity Exchange, and Farm Concern International.
The project targets vulnerable farming communities and is built around four key pillars: mindset transformation, financial empowerment, sustainable agriculture, and access to capital.
Justice Tsegah, who leads the project, said it begins with shifting mindsets through the use of the Empowered Worldview Curriculum. This approach enables farmers to identify their needs and develop household business plans as a pathway out of poverty.
The second phase introduces a savings model called “Savings for Transformation,” where community groups pool funds every week and access small loans to start or expand their businesses.
Farmers are then trained to adopt inclusive and sustainable agricultural practices and learn how to tap into market value chains.
The final stage involves injecting capital through VisionFund Ghana, the microfinance arm of World Vision. The goal is to help savings groups grow by offering financial support matched to their business activities.
Tsegah noted that digital tools will replace manual systems. A mobile app will allow members of savings groups to track their finances and ensure greater transparency.
Frank Alornu, CEO of VisionFund Ghana, said loans will be tailored to each farmer’s business type and size. Financial literacy training will be provided before disbursement, and funding will only be allocated to individuals already engaged in viable economic activities.
Esoko CEO Solomon T. Mensah said his organisation will provide farmers with real-time market information through the Digimart platform. This digital support will help boost incomes, especially in the 14 districts targeted by the project.
The THRIVE 2030 Project combines mindset change, finance, market access, and technology to equip Ghanaian farmers with the tools they need to break the cycle of poverty and build long-term resilience.
Police in the Eastern North Region have intercepted a significant consignment of suspected Indian hemp during a targeted operation on the Volta Lake. The seizure, which occurred near Kwahu Adawso, resulted in the arrest of three suspects.
The suspects — Abraham Agonu, Michael Akuaku, and Confidence Amenuveve — were caught on Tuesday, May 28, 2025, at Asuboni. They were transporting the suspected narcotics across the lake when security forces moved in.
The operation, based on intelligence, uncovered 5,950 parcels of what is believed to be Indian hemp. The leaves, both compressed and uncompressed, were tightly packed in 85 maxi sacks aboard a large engine-powered boat.
Suspected Indian hemp exhibits
Alongside the narcotics, police also retrieved a pump-action shotgun, two outboard motors, and the boat used in the smuggling attempt.
Investigators believe the smuggling was coordinated by a man known only as Felix. He is suspected to have escaped on a separate boat towards the Akate area. A search is underway to track him and other possible accomplices.
The suspects are currently in police custody. They are assisting with ongoing investigations.
Police say this operation forms part of a sustained crackdown on drug trafficking activities along Ghana’s inland waterways. Authorities warn that more operations will follow as efforts intensify to dismantle the networks behind such illicit trade.
The National Intelligence Bureau (NIB) has intercepted a large consignment of cannabis in the Volta Region, dealing a significant blow to drug trafficking operations.
The seizure took place at dawn on Thursday, May 29, 2025, in Zadolakope, a riverside community in the North Tongu District. Acting on intelligence, NIB operatives launched a raid and recovered 3,680 slabs of cannabis packed in 49 bags. Each bag contained 80 slabs.
The consignment had been traced to the banks of a river in the Juapong-Adidome area. Intelligence suggested the drugs were meant to travel along the lower Volta River, with planned transit in Ada before reaching Accra.
Officials close to the operation said the move was part of ongoing efforts to dismantle trafficking networks in the region. The bust highlights the NIB’s increased vigilance and focus on disrupting criminal supply chains.
The seized cannabis has since been transferred to the Narcotics Control Commission office in Ho for further action. Investigations are expected to continue as authorities work to identify those behind the trafficking attempt.
This latest interception adds to a growing list of successful operations by the NIB as the agency intensifies its crackdown on both drug and cocoa smuggling across Ghana.
The Ministry of the Interior has declared Friday, June 6, 2025, a statutory public holiday to mark Eid-Ul-Adha. The announcement, signed by Interior Minister Muntaka Mohammed-Mubarak on Thursday, May 29, follows Ghana’s tradition of recognising major religious festivals as national holidays.
Eid-Ul-Adha, also known as the Festival of Sacrifice, is one of the two most essential celebrations in Islam. It commemorates Prophet Ibrahim’s readiness to sacrifice his son in obedience to God. The festival also marks the end of the annual Hajj pilgrimage in Mecca.
In Ghana, the occasion is observed with prayers at mosques and open grounds, animal sacrifices, and the distribution of meat to family members, neighbours, and the less privileged. The day often includes acts of charity, family visits, and community gatherings.
By declaring the day a holiday, the Ministry aims to give Muslims across the country the opportunity to observe their religious duties without interruption from work or official obligations.
Large gatherings are expected in cities like Accra, Kumasi, Tamale, and Wa, where religious leaders and government officials often join worshippers. Security and health agencies are also expected to coordinate with community leaders to ensure peaceful and safe celebrations.
It is both curious and sobering to hear segments of the Ghanaian populace lament that they have not felt the effects of the cedi’s remarkable appreciation against the US dollar and other major currencies. This sentiment, though understandable in a high-cost economy where the prices of goods and services remain stubbornly high, often fails to capture the macroeconomic strides that underpin the local currency’s recent resurgence. Indeed, many consumers measure economic progress solely by the cost of food, fuel, and transport areas where price rigidity and market inertia can delay the trickle-down benefits of currency gains.
However, the appreciation of the cedi is not an abstract academic achievement; it is a tangible marker of renewed investor confidence, improved foreign exchange liquidity, and sounder macroeconomic stewardship. The fact that the cedi has clawed its way back from depths of uncertainty, regaining over 40% of its value since January 2025, is not just a statistical win, it is a national recovery story in motion. The stabilization of the exchange rate holds long-term implications: easing pressure on import bills, reducing the cost of external debt servicing, and creating a more predictable environment for trade and investment.
Yet, the psychological scars of past economic turbulence linger. Many Ghanaians, having endured months of rapid inflation and a plummeting currency, remain cautiously skeptical. They await visible reductions in market prices before acknowledging any sense of relief. In that context, the disconnection between macroeconomic progress and microeconomic perception is not denial, it is lived experience. But with sustained policy discipline and a firm grip on inflation, the benefits of a stronger cedi will inevitably ripple through the economy. It is just a matter of time before the echo of this appreciation is heard in every household, market stall, and fuel pump.
A 42% Appreciation – The Numbers Don’t Lie
In January 2025, the exchange rate stood at GHS14.70 to USD1. By May 27, it had improved significantly to GHS10.35. This movement in the exchange rate suggests a strong 42% appreciation of the cedi. Such a change is not trivial; it indicates a positive shift in Ghana’s macroeconomic outlook and market confidence. When a local currency appreciates, it essentially means it has gained value relative to foreign currencies. This can have wide-ranging impacts from reducing the cost of imports to easing inflationary pressures. Yet, to truly appreciate the magnitude of this development, one must look at the math.
Direct Quotation Approach
Using the direct quote, where the exchange rate expresses how many units of local currency are needed to buy one unit of foreign currency, we apply the formula: (Appreciation Rate) = (Old Rate – New Rate) / New Rate Substituting values: (14.70 – 10.35) / 10.35 ≈ 42% Though the percentage is positive, this result can appear counterintuitive because the appreciation is reflected as a decrease in the rate. Nonetheless, a falling direct rate indicates that the cedi now requires fewer units to buy a dollar—a hallmark of currency strength.
Indirect Quotation Approach
In contrast, the indirect quotation expresses how many units of foreign currency one can obtain with a single unit of the local currency. This is especially useful in cross-border trade or investment analysis. For example: January: 1 / 14.70 = 0.0680 USD May: 1 / 10.35 = 0.0966 USD Rate of change = (0.0966 – 0.0680) / 0.0680 ≈ 42% This reconfirms the appreciation of the cedi where one cedi fetches more dollars than before. It highlights growing confidence in the domestic currency, potentially driven by increased foreign inflows, macro stability, and better monetary management.
The Dollar Has Depreciated Too By 29.6%
Currency appreciation is inherently a two-sided coin, what one gains, the other yields. In this instance, the US dollar has depreciated against the Ghanaian cedi by approximately 29.6%, reflecting the cedi’s corresponding strength over the same period. Using the same formula in reverse: (Start – End) / End Indirect: (0.0680 – 0.0966) / 0.0966 ≈ -29.6% Direct: (10.35 – 14.70) / 14.70 ≈ -29.6% This shows the weakening of the dollar relative to the cedi over the period. Such depreciation could be a reflection of changing capital flows, shifts in trade balance, or confidence in Ghana’s policy direction.
The Governor Has Spoken: No More Illusions
In a decisive and reassuring statement on May 28, 2025, Dr. Johnson Asiama, Governor of the Bank of Ghana, addressed the market’s speculative tendencies with refreshing clarity and bold authority. His message was not only a response to the lingering doubts within sections of the populace but also a pointed call to recalibrate expectations in light of changing economic fundamentals. Speaking with the weight of institutional credibility, Dr. Asiama declared:
“To those still holding dollars in anticipation of a return to old patterns of depreciation, I will say this plainly: The market has changed. The narrative has changed. And the policy environment has changed.”
Such pronouncements are not mere rhetoric as they are laden with profound monetary insight and a deeper understanding of Ghana’s evolving macroeconomic terrain. The Governor’s remarks affirm that the sustained appreciation of the cedi is not a fleeting coincidence but the result of deliberate policy interventions, tightened fiscal controls, strategic inflows, and a recalibrated monetary framework.
By publicly reinforcing the strength of the cedi, the Bank of Ghana sends a strong signal to currency traders, investors, importers, and exporters alike: speculation against the local currency will no longer yield predictable gains. In effect, the central bank is reclaiming the narrative and setting the tone for disciplined, data-driven expectations. This also provides assurance to the international community and domestic markets that there is policy coherence and institutional resolve underpinning the exchange rate stability.
Moreover, the Governor’s remarks serve a behavioral function. They aim to break the cyclical psychology of dollar hoarding and currency panic, an entrenched response that has historically weakened the cedi in times of uncertainty. His statement is a subtle but powerful shift from passive reassurance to proactive narrative management. It redefines the playing field and invites all market actors to move in concert with a new Ghanaian financial reality, one that embraces resilience, transparency, and a forward-looking posture.
Conclusion: Let the Facts Speak Louder Than Fear
While skepticism is a natural response in uncertain economic times, the appreciation of the cedi is no illusion, it is an empirical reality supported by hard numbers, meaningful policy reforms, and clear institutional affirmations. In a country where citizens have grown weary from bouts of inflation and currency volatility, such doubts are rooted not in ignorance, but in experience. Yet, even within that context, it is crucial to recognize when the tide is turning. The data does not lie: the cedi has gained significant ground, and its upward trajectory is not merely a statistical anomaly. It is a direct consequence of coordinated fiscal prudence, increased foreign inflows, and a resolute monetary stance by the Bank of Ghana.
Rather than holding on to outdated narratives of endless depreciation and economic doom, it is time for a collective mindset shift, one that allows us to embrace the new economic reality with both eyes open. The cedi’s resurgence has been hard-won, not gifted. It is the fruit of painful reforms, renewed investor engagement, and the quiet but relentless work of economic stewards who have steadied the ship during turbulent times. This is not a time for nostalgia or cynicism. It is a time for strategic optimism.
Let us therefore acknowledge this recovery, not with blind celebration, but with thoughtful appreciation. Let us leverage this window of opportunity to stabilize prices, attract investments, and create buffers for future shocks. Let us encourage businesses to recalibrate their cost assumptions and pass on the benefits of a stronger currency to the consumer. And above all, let us look ahead with renewed confidence not in the hope of a perfect economy, but in the assurance that progress is being made.
The market has spoken, and so has the Bank of Ghana. The cedi is not trembling and it is standing tall. Let the numbers, and not fear, guide our faith. In this new financial chapter, may we trade doubt for data, and hesitation for hope.
The Member of Parliament for Bongo, Charles Bawaduah, says the ongoing removal proceedings against suspended Chief Justice Gertrude Torkornoo are lawful and free from flaws.
Speaking on The Point of View with Bernard Avle on Channel One TV, Bawaduah dismissed claims made by former Attorney General and lead counsel for the Chief Justice, Godfred Yeboah Dame, who had described the process as unconstitutional and lacking due process.
According to the Bongo MP, there is nothing illegal about the proceedings. He said the process was following the law step by step and expressed surprise that Mr Dame would think otherwise.
Bawaduah argued that the case should be treated strictly as a legal matter. He stressed that it is not about politics or public sympathy but about the constitution and how it is applied. In his view, the outcome will be based on facts and legal procedures, not political alignment.
He also criticised the Chief Justice’s legal team over their failed attempt to stop the committee’s work. He said they were unable to meet the legal requirements needed for an injunction. That failure, he noted, was why the court threw it out.
His comments came shortly after the Supreme Court, on Wednesday, May 28, unanimously dismissed Justice Torkornoo’s application for an injunction. This decision allows the five-member presidential committee to continue investigating the removal petitions.
Bawaduah maintains that the process is fair and constitutional. He believes those who say otherwise are ignoring the facts.
