PIAC warns of GNPC's collapse post-2026 without government support

The Public Interest and Accountability Committee (PIAC) has warned that the Ghana National Petroleum Corporation (GNPC) will face a financial crisis post-2026 if it loses government support, as mandated by the Petroleum Revenue Management Act (PRMA).

The PRMA stipulates that GNPC will no longer receive funding from the Petroleum Holding Fund (PHF) after 15 years from the start of commercial

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PIAC emphasized the importance of GNPC becoming financially self-sufficient by urging the government to refrain from imposing additional financial burdens on the corporation.

In its report titled "The Role of GNPC in the Upstream Petroleum Industry: Challenges and Prospects," PIAC suggested that GNPC collaborate with various stakeholders to align expectations and secure support. Additionally, it recommended revising GNPC's strategy to adapt to the post-2026 financial landscape.

PIAC highlighted GNPC's significant financial commitments, including guarantees and payment receivables totaling $1.14 billion as of 2022. These commitments encompass payments made on behalf of the government, state-owned enterprises, and outstanding debts related to infrastructure projects and gas supply to Ghana National Gas Limited Company.

Moreover, PIAC expressed concerns raised during public outreach indicating fears of political influence on GNPC's operations, leading to quasi-fiscal expenditures and advances to other government entities.