DVLA cuts roadworthiness service agreement cost from $155.4m to GH¢2m for three years

Chief Executive Officer of the DVLA, Julius Neequaye Kotey

The Driver and Vehicle Licensing Authority (DVLA) says it has reduced the cost of its service-level agreement (SLA) for roadworthiness certificates from a projected $155.4 million over three years to GH¢2 million for the 2026–2028 period.

The Chief Executive Officer of the DVLA, Julius Neequaye Kotey, announced the renegotiated agreement at the Government Accountability Series on Monday, October 12, 2026, describing the move as part of efforts to reduce expenditure and strengthen the authority’s financial management.

Mr Kotey explained that the previous agreement, which covered 2023 to 2025, had an annual cost of $51.8 million, translating into a projected total expenditure of $155.4 million over the three-year period.

He said a review of the arrangement led to a renegotiation that brought the cost of the new agreement, covering 2026, 2027 and 2028, down to GH¢2 million.

“For the three years, we immediately reviewed the agreement, renegotiated, and reduced the SLA cost to 2 million Ghana cedis. That is from 2026, 2027, and 2028.

“Instead of paying $51.8 million annually, summing up to $155.4 million for three years, we are now paying 2 million Ghana cedis for the three years,” he said.

According to the DVLA chief executive, the revised arrangement would generate annual savings of approximately $50 million.

“This translates to savings of about $50 million every year,” he said.

However, the figures presented require further clarification, as the previous agreement was priced in US dollars while the renegotiated cost is stated in Ghana cedis. The basis for the projected annual savings of about $50 million also remains unclear in relation to the new three-year cost of GH¢2 million.