Parliament has officially approved a controversial proposal by the Mahama-led administration to channel all oil revenues and mineral royalties into th
Parliament has officially approved a controversial proposal by the Mahama-led administration to channel all oil revenues and mineral royalties into the government’s flagship Big Push infrastructure agenda—an ambitious road development project projected to cost GH¢13.8 billion and span through 2028.
The move has ignited a heated public debate over economic sustainability, intergenerational equity, and fiscal responsibility.
The approval, which came during the 2025 Mid-Year Fiscal Policy Review, allows the government to commit to multi-year contracts aimed at transforming Ghana’s road network using solely domestic funding.
The joint Finance and Budget Committee, in its report to the House, endorsed the policy, citing it as a bold and strategic alignment with national development priorities
The Committee’s recommendation invoked Section 33 of the Public Financial Management Act, 2016 (Act 921), enabling the government to make long-term financial commitments in support of the project.
While the ruling government has hailed the move as a game-changer that will rapidly modernize transportation infrastructure, critics argue that it comes at a steep and potentially reckless cost.
A Financial Gamble With National Wealth?
By diverting all current oil revenues and mineral royalties into the Big Push project, the government is effectively suspending contributions to critical sovereign wealth components like the Stabilization Fund and the Heritage Fund—financial buffers meant to protect the economy during shocks and secure wealth for future generations after Ghana’s oil resources deplete.
“This presupposes that, going forward, there wouldn’t be any oil money deposited in the stabilization or heritage funds,” one critic remarked.
“The government is literally consuming every pesewa today without setting aside resources for tomorrow.”
Others fear this approach could leave state-owned entities like the Ghana National Petroleum Corporation (GNPC) financially crippled, hampering exploration, development of new oil wells, and long-term energy security.
Critics Decry Lack of Innovation
Opponents of the government’s approach describe it as financially lazy and short-sighted.
Some have compared it unfavorably to former Vice President Dr. Mahamudu Bawumia’s Sinohydro barter agreement, which leveraged Ghana’s bauxite resources to fund infrastructure development without mortgaging future oil earnings.
Indeed, sustainable finance has emerged as a dominant force in global infrastructure investment. From just $2 trillion five years ago, the market has grown to over $7 trillion, with more than 3,900 organizations actively managing over $1.5 trillion in impact-focused investments.
Much of this capital is directed toward infrastructure projects in emerging markets.
Critics are urging the Mahama administration to develop an investment-friendly public policy framework that would attract a share of this global capital, instead of depending solely on Ghana’s limited domestic resources.
The Road Ahead
Despite the backlash, government spokespersons maintain that the Big Push initiative is necessary to close Ghana’s critical infrastructure gap, especially in transportation. With the 2025 budget already factoring in the redirection of resource revenues, officials argue that the time has come to translate policy into tangible development.
But as implementation looms, economists, civil society groups, and some Members of Parliament continue to question whether the cost—in terms of future economic resilience and lost opportunities—is too high.
For now, all eyes are on how the Mahama administration will execute the Big Push and whether it can demonstrate value for the billions being reallocated.
If not, what is being hailed as a bold leap forward might end up as yet another expensive detour on Ghana’s long road to sustainable development.
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