GHANA'S OIL MONEY AND THE BIG PUSH

In the evolving story of Ghana's management of its oil wealth, the 2025 amendments to the Petroleum Revenue Management Act stand out a s a major turning point especially the changes outlined on pages 56 to 58. The original 2011 law created a clear framework for spending the Annual Budget Funding Amount. It set out twelve priority areas covering everything from agriculture and health to industrialization, infrastructure, and human resource development.

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Governments could pick up to four of these areas each year to focus their spending. The idea was to meet urgent needs while building a stronger economy for the long term and to avoid letting money be spent without any real direction. The new amendments change all that. They direct every single cedi of the ABFA straight into infrastructure under what is called the Big Push Infrastructure Programme. The old list of twelve areas has disappeared leaving only one focus physical infrastructure such as roads, energy projects, ports, and similar developments. This marks a complete shift in how Ghana uses its petroleum revenues concentrating everything on visible physical assets and stepping away from broader goals across different sectors.

This decision makes a lot of sense given the huge infrastructure gaps the country faces. Backlogs in roads, power supply, ports, and digital systems hold back progress every day. Pouring all available oil money into these areas should speed up project delivery, bring down costs through larger scale efforts and deliver real gains in productivity. Better roads and reliable energy can lower business expenses, attract new investors and create jobs right away. In tough financial times this single minded approach also makes it easier for citizens t o see results and hold leaders accountable compared to spreading money thinly across many sectors. People want t o see tangible progress from the oil fund and infrastructure delivers that visibility.

At the same time removing industrialization from the priority list raises real worries about Ghana's economic future. In the old system governments could direct funds into manufacturing, agro processing, value addition, and setting up industrial zones. These efforts were meant to help the country move beyond raw resource exports and reduce dependence on oil over time. Without that focus the amendments could lock Ghana into a path where it builds impressive roads and power lines to move goods but does far less to create the factories and industries that generate higher value products and better paying skilled jobs. This risks the classic resource curse where money supports daily needs and big projects yet fails to create a more productive and resilient economy. True industrialization may be slower and less flashy but it is vital for lasting transformation and jobs that outlive construction phases.

The loss of flexibility is another serious concern. The earlier approach let governments adapt to new challenges and shifting priorities whether from economic shocks or changing national

needs. Now with everything locked into one hundred percent infrastructure there is little space left for important investments in agriculture, education, or health even though these areas strengthen the foundation for real industrial growth and develop people's skills. Heavy emphasis on big projects also opens the door to waste, overruns, and corruption unless strong oversight remains in place. The changes have already triggered important debates about transparency, the continued relevance of bodies like PIAC, and how to protect future generations through the Heritage Fund.

In the end these amendments represent a clear bet that infrastructure alone will drive Ghana's development forward. It offers the chance for faster visible progress and tackles real bottlenecks but it also narrows the ways oil revenues can support broader industrialization and self reliance. Everything will depend on how well the Big Push is executed and whether those infrastructure projects truly connect to and support productive industries instead of standing in for them. As Ghana enters this new chapter the big question is whether this focused approach will build the diversified and industrialized economy the country needs to thrive long after its oil resources begin to fade.

Enoch Oppong. Researcher, Black Gold Bulletin

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