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17.12.2013 General News

Disbursement of Oil revenue is a matter of policy and common sense - MOFEP

By JoyNews TV | Emefa Ewoenam Atiamoah-Eli
Disbursement of Oil revenue is a matter of policy and common sense - MOFEP
LISTEN DEC 17, 2013

The Chief Economist and Director of the Real Sector at the Ministry of Finance and Economic Planning, Kwabena Boadi Oku-Afari has posited that the allocation of funds accruing from the production of oil to carry out social infrastructure projects in selected sectors of the economy “is a matter of policy and common sense not to spread things too thinly” as a against the perception that funds are being misapplied. 

His response comes on the back of comments by Chief Executive of the African Centre for Energy Policy Amina Andam suggesting that Ghana's oil revenue is not being properly allocated as it should be. 

The two were discussants on Multi-TV's Tarzan's Take which sought to explore what the country's oil revenues are being used for since the commencement of production in 2010.

Giving a general overview of what has accrued to the country from its oil find and what these funds are being used for, Oku-Afari categorized the earnings in the following:

Oil Money
Royalties                                                   - US$423mln (GHC 750mnl)

Carried and Participating Interest                 - US$1.1bln (GHC 1.9bln)

Corporate Income Tax (35%)                       - US$172mln (GHC 331mln)

Surface Rentals                                         - US$1.2mln (GHC 2.3mln)           

Disbursement
Ghana National Petroleum Corporation                 - US$625mln (GHC 1.1bln)

                -Equity Financing Cost                                 - US$311mln

                -GNPC Budget                                            - US$314mln

Annual Budget Fund Amount (ABFA)                  - US$1.1bln (GHC 1.9bln)

                -Current ABFA                                            - US$658mln (GHC 1.17bln)

Ghana Petroleum Fund (GPF)                             - US$409mln (GHC 757mln)

Kwabena Boadi Oku-Afari admitted that though the allocation of the funds may appear not be in tandem to what has been prescribed in policy, issues regarding classification under some sectors of disbursement need to be looked at for proper clarification. 

He recommended a second look at especially some classifications under Capacity Building, an area in which the oil fund must be invested.

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