Energy Minister-designate John Abdulai Jinapor (JJ) has voiced serious concerns about the growing financial crisis in Ghana’s energy sector, citing a staggering debt burden of over $3 billion.

Appearing before Parliament’s Appointments Committee on January 13, 2025, Mr. Jinapor highlighted the rapid escalation of the sector’s liabilities, which he noted had increased significantly over the years.

“When we left office in August 2017, the debt stood at $2.1 billion.

As of January 12, 2025, the figure has risen to over $3 billion,” he stated, emphasizing the urgent need for action.

A significant portion of the debt stems from unpaid obligations to Independent Power Producers (IPPs), which amounted to $1.2 billion by October 2024.

Additionally, inefficiencies, including unaccounted-for power sales, have exacerbated the financial strain on the sector.

Mr. Jinapor underscored the importance of implementing pragmatic and sustainable measures to address the crisis.

He called for robust financial management practices, operational reforms, and greater efficiency to restore the sector’s stability and protect Ghana’s economy.

“Our focus must be on rebuilding investor confidence, ensuring the sector's long-term viability, and safeguarding the broader economic health of the nation,” he added.

The Energy Minister-designate pledged to work closely with stakeholders to develop a comprehensive strategy to tackle the mounting liabilities and position the energy sector as a driver of economic growth.