Ghana will retain 38% of oil revenue – Amoako-Tuffuor

Ghana will retain 38% of the country’s oil revenue, an advisor to the Ministry of Finance and Economic Planning, Dr. Joe Amoako-Tuffuor has said according to a Daily Graphic report of March 6, 2010.

The newspaper citing a presentation he made, indicated that he said Ghana will earn from direct and indirect sources such as royalties, corporate income tax, dividends, additional income tax, surface rental and carried interest.

He was however reported to have said that what is yet to be determined is how the revenue should be paid – either in cash or in kind.

He said revenue inflow has been categorized into two – big spending era and low spending – adding that the big spending era spanned 2011-2018, while the low spending era was expected from 2018 and beyond.

Since the discovery of oil in commercial quantity was announced in Ghana in 2007, most people have focused on how much money Ghana will make. One estimate even says every Ghanaian will get 17 pesewas when the amount is shared among all Ghanaians.

Ghana’s total revenue from the oil and gas find will represent less than five per cent of the country’s Gross Domestic Product (GDP), according to the Energy Minister, Dr Joe Oteng-Adjei, the Daily Graphic reported in its February 21, 2010 issue.

With the country’s current GDP at well over $18 billion, Dr Oteng-Adjei said the total revenue to the government and the Ghana National Petroleum Corporation (GNPC) in respect of royalties, income tax and interest payment on oil and gas exploration would be $1 billion per annum, at an average crude oil price of $60 per barrel.

Speaking at a workshop on ‘Good Governance and the Emerging Oil and Gas Industry’ for selected journalists reporting from Parliament, the minister captured the scenario thus, “If we are to share the revenue to the 23 million Ghanaians, each of us will receive about 12 cents per day (17Gp per day)” and wondered whether that could be the panacea for the economic problems of the country.

Others have also said the benefits to the country, will be more in the area of employment to local people, even though, not many Ghanaians have expertise in the oil industry.

By Emmanuel K. Dogbevi