The Public Interest and Accountability Committee (PIAC) has issued a warning that the Ghana National Petroleum Corporation (GNPC) may face challenges surviving without government support if funding from the Petroleum Holding Fund (PHF) ceases after 2026, as mandated by the Petroleum Revenue Management Act (PRMA).

According to the PRMA, the GNPC is to be funded for 15 years from the start of commercial production of crude oil. After this period, the corporation will no longer receive financial support from the PHF.

This implies that after 2026, GNPC will need to find alternative sources of funding to sustain its operations.

“One way for GNPC to be more resourceful, financially, while promoting autonomy and flexibility, is for the government to desist from imposing additional responsibilities and obligations on the Corporation”, it disclosed in a report titled “The Role of GNPC in the Upstream Petroleum Industry: Challenges and Prospects”.

The report further suggested that to secure funds beyond 2026, the GNPC should engage in communication and collaboration with the state and other stakeholders.

These stakeholders include regulators, investors, customers, employees, suppliers, and communities. This engagement is essential to align expectations and interests, as well as to secure their support and participation in GNPC's operations.

“While at this, the Corporation also needs to advocate for and influence the policies and regulations that affect their transition, and to demonstrate their contribution and value to society and the economy. It is therefore critical that the Corporation revises its strategy with this condition in mind while conducting its operations”, it pointed out.

According to PIAC's report, as of the end of 2022, GNPC's total guarantees and payment receivables stood at $1.14 billion.

These figures include payments and guarantees made on behalf of the Government of Ghana, State-Owned Enterprises (SOEs), national and local infrastructure projects, and outstanding debts related to gas supplied to the Ghana National Gas Limited Company.

PIAC also noted concerns raised during its public outreach and engagements at the district and regional levels.

Some Ghanaians fear that the Corporation is susceptible to political influence, leading it to undertake quasi-fiscal expenditures and provide advances to other parastatals, activities that are typically the responsibility of the central government.