'Don’t blame IMF for your tariff increments' – Kofi Tonto chides government

Kofi Tonto

Kofi Tonto, a political aide to former Vice-President Dr. Mahamudu Bawumia, has taken aim at the current administration and the National Democratic Congress (NDC), accusing them of misleading the public about the reasons behind recent electricity tariff hikes.

In a Facebook post, Mr. Tonto disputed claims suggesting that the International Monetary Fund (IMF) was responsible for the increase, clarifying that the IMF’s role does not include enforcing such hikes.

“Do not let anyone deceive you into thinking that IMF adjustments automatically equate to increases. They do not!” he wrote. “The IMF’s call for a review does not automatically imply an increment; it is a request to ensure that tariffs are realistic and sustainable.”

He explained that although the IMF recommends aligning utility pricing with the actual cost of production, it is ultimately up to the government to decide whether and how to implement any changes.

To support his argument, Mr. Tonto pointed to the first quarter of 2024 under the New Patriotic Party (NPP) administration. “In fact, they were reduced for both residential and non-residential consumers, while water tariffs remained unchanged," he said, noting that no tariff increases were imposed despite being under an IMF program.

He also referenced a key moment in 2018 during a previous IMF engagement, when the Akufo-Addo-led government actually lowered tariffs. “In 2018, under an IMF program, Akufo-Addo decreased tariffs by 17.5%. So how could it be that the IMF only demands increases? The evidence simply doesn’t support that claim,” he stated.

Comparing the two parties, Mr. Tonto said that while the NPP’s average tariff adjustment for 2024 stood at 6.47%, the NDC has implemented a steeper increase of 14.75%.

He urged Ghanaians to examine the facts objectively and avoid being swayed by misleading narratives.

“There is a scientific basis for tariff reviews; however, there is also a responsibility to apply a human element to these decisions. That’s what the NPP demonstrated, and it is what must continue,” he concluded.