An Assessment of Petroleum revenue management in Ghana

Abstract

The purpose of the study was to examine the management of oil revenue in Ghana. Specifically, the study ascertains whether Ghana’s petroleum revenue management model conforms to the internationally recognised standard, and also whether it depicts transparency. The reasons for the statutory limits on collateralisation of government’s borrowing against the projected petroleum revenue and the benefits of segregation of the petroleum revenue and limits for the mandatory savings plan and the annual budget funding of the petroleum revenue were also examined. Descriptive research design was used. Purposive sampling procedure was used to sample 93 employees comprising 37 from private institutions and 56 from government institutions. Data were collected using questionnaire. The analysis of collected data was done by the help of the Predictive Analytic Software and presented using cross tabulation, frequency tables and percentages. Ghana’s petroleum revenue management model exhibits international features best practices even though it still needs some modifications for its effective management in relation to transparency and good governance. The law ensures that revenue from the oil and gas are used for development and improve standard of living of the citizenry and also provisions are made for future generation. Based on the key findings and conclusions of this study, it is recommended to stakeholders to constantly ensure that the objectives of petroleum revenue management in Ghana are adhered to for it to continue to match international best practices.