A new study by the University of Ghana (UG) has revealed that despite accruing commendable oil revenues since 2011, the country’s oil wealth has not significantly improved socio-economic conditions for citizens.
The study – by University of Ghana Business School with support from the Ford Foundation – covered from 2011 to 2023 and was conducted between 2022 and 2023.
It found that “after receiving over US$10billion in oil revenue, oil wealth has not significantly altered socio-economic conditions for most Ghanaians”.
Recent figures from the Public Interest and Accountability Committee (PIAC) place total oil revenue at US$11.21billion as of 2024 – highlighting continued inflows into the sector. Of this amount, approximately GH¢27.51billion has been allocated to fund national projects through the Annual Budget Funding Amount (ABFA).
Between 2011 and 2016, the administrations of late President John Evans Atta Mills and former President John Dramani Mahama disbursed GH¢3.31billion. From 2017 to 2024, President Nana Addo Dankwa Akufo-Addo’s administration allocated GH¢24.2billion.
Critics and researchers argue that the fragmented nature of project selection and lack of strategic direction have severely undermined the impact of these funds.
Dr. Abdul-Gafaru Abdulai, lead researcher and Associate Professor, stated that despite policy promises and heightened public expectations, the proceeds from oil production have been spread too thinly to effect meaningful change – especially in historically marginalised regions.
“We have not been very purposeful in how we are spending oil revenues. There is no clear formula for equitable distribution – just discretionary spending driven by politics and bureaucracy.”
The research also revealed stark regional disparities in distribution and impact of oil-funded development projects. Indeed, the report paints a sobering picture of how oil revenues have been spent over the last decade.
Interestingly, it found that Greater Accra Region alone accounted for nearly 50 percent of all oil-funded health and road expenditures between 2015 and 2023, despite comprising only 17 percent of Ghana’s population.
In contrast, the Upper East, Upper West and Northern Regions collectively received less than 10 percent of health-related ABFA spending. Also, Volta Region was identified as the most underfunded relative to its population, receiving just 1.9 percent of health spending despite making up 8.2 percent of the country’s population.
Even in non-pandemic years like 2015 and 2018 Accra dominated, accounting for over 70 percent of national health expenditure.
In an effort to rectify these shortcomings, government earlier this year amended key provisions of the Petroleum Revenue Management Act (PRMA), 2011 (Act 815). The revised law mandates that all ABFA funds be invested in infrastructure under the government’s ‘Big Push’ agenda – intended to deliver high-impact, transformative projects.
However, researchers caution that focusing on infrastructure alone should not come at the expense of transparency and oversight, particularly the role of watchdog institutions such as PIAC.
These findings underscore a growing perception among Ghanaians that despite the country’s resource endowment, many citizens remain excluded from its benefits.
