Ghana, in 2011 passed the Petroleum Revenue Management Act to addresses how petroleum revenues are collected, spent and invested.
However, an investment committee which determines how proceeds from the country’s oil are invested is yet to be set up.
The Director of Core Operations Services at the World Bank in charge of the Africa region, Ed Olowo-Okere told Citi Business News; Ghana’s energy and petroleum ministry must fully ensure that the regulations surrounding the industry are adhered to the letter.
“Ghana is one of the best performing countries in Africa, and there is the need to pay strong attention to economic policies and managing the economy properly especially with the oil resources coming in; I think the government has already developed a good framework for the management of the oil resources and I think it is important for government to really implement that framework properly.”
The Finance Minister of oil-rich Nigeria Dr Okonjo-Iweala, recently said Ghana’s Petroleum Revenue Management Act has been widely praised because the legislation specifies how petroleum revenue should be collected and allocated.
However, she warned that temptation could set in at some level and therefore recommended that policymakers and leaders to be more transparent in the negotiations of contracts.
“They should also do their homework thoroughly before beginning contract negotiations with foreign oil firms and investing the oil income in public infrastructure,” she recommended.
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