President Mahama Defends GH¢1 Energy Levy Increase, Citing Urgent Need to Rescue Power Sector

President John Mahama has addressed the widespread public reaction to the controversial GH¢1 increase in the Energy Sector Levy, offering a candid explanation behind the move.

“It’s a tough call, but one we had to make,” he stated, emphasizing that the energy sector is facing a dire financial crisis that could cripple Ghana’s economy if left unaddressed.

According to the president, the power sector is burdened with debts exceeding $3.1 billion, and an additional $1.8 billion is urgently needed to secure fuel for thermal power generation. Without swift intervention, Mahama warned, the nation risks a breakdown in productivity and a serious slowdown in industrial growth.

In response, Parliament passed an urgent amendment to the Energy Sector Levies Act, introducing the GH¢1 increment. The bill was passed under a certificate of urgency, highlighting the severity of the situation.

Mahama assured the public that the estimated GH¢5.7 billion in annual revenue from the levy will be exclusively used to clear legacy energy sector debts and stabilize power supply.

“Not a single cedi will go into the Consolidated Fund,” he stressed. “This fund will be audited and made public. We’re keeping it clean.”

Addressing concerns about a potential rise in fuel prices, the president noted that the strengthening of the cedi should help cushion consumers — at least in the short term.

“We know this isn’t easy for Ghanaian’s,” Mahama acknowledged. “But this decision was necessary to protect our energy future.”