GHANA’S PETROLEUM FUNDS — THE $1.55 BILLION WE SAVED FOR THE RAINY DAY AND FOR OUR CHILDREN’S CHILDREN
Every time Ghana lifts a barrel of oil from Jubilee, TEN, or Sankofa, the money does not go straight into government chest to be spent. By law, it goes through a pot, and from that pot, we share, we save, and we stabilize.
That pot is the Ghana Petroleum Funds — GPFs.
Many Ghanaians hear about oil money but think only of fuel prices. They do not know we have a sovereign wealth fund that as of December 31, 2025, is worth $1.55 billion.
WHAT IS THE FUND? THE LAW BEHIND IT
The GPFs were created under the Petroleum Revenue Management Act, 2011 (Act 815) as amended by Act 893 in 2015. After the mistakes of gold and cocoa where we spent everything and saved nothing, Parliament said: Oil is finite. Let us manage it with law.
The law says all petroleum receipts must first go into the Petroleum Holding Fund at the Bank of Ghana. From there, up to 70 percent goes to the Annual Budget Funding Amount, ABFA, for roads, agriculture, education and health. The rest goes to the two Ghana Petroleum Funds — the savings.
The two funds are Ghana Stabilisation Fund (GSF) which is our shock absorber, and Ghana Heritage Fund (GHF) which is our children’s inheritance.
HOW MUCH DO WE HAVE NOW?
According to the Bank of Ghana Semi-Annual Report on the Petroleum Holding Fund as of December 31, 2025, the total reserves stood at 1.55 billion dollars.
Out of that, the Ghana Heritage Fund alone holds about 1.38 billion dollars. The Ghana Stabilisation Fund holds about 174.98 million dollars.
In the second half of 2025 alone, even though crude oil inflows were lower, the funds made 28.11 million dollars in investment returns from safe investments in US Treasury bonds and other qualifying instruments.
And importantly, no money was withdrawn from the Heritage Fund. The law forbids touching it until our oil runs out. So it keeps compounding.
HOW DOES THIS FUND BENEFIT GHANA?
First, it stops budget collapse when oil price falls. In 2015/2016 and in 2020 when oil price fell from 100 dollars to 30 dollars, Ghana did not collapse like some oil countries. Why? The GSF was there. Government withdrew from GSF to fill the budget hole. That is why teachers were still paid and hospitals still ran.
Second, it saves for when oil finishes. Jubilee will dry up in about 20 years. The Heritage Fund is an endowment. The law says we cannot touch the principal until petroleum reserves are depleted. So the 1.38 billion dollars today, if managed well, could become 3 to 4 billion for our grandchildren to build schools when there is no oil.
Third, it reduces borrowing. When GSF is healthy, government borrows less to finance shortfalls. Less borrowing means less interest, less pressure on the cedi, lower inflation for all of us.
Fourth, it funds development through ABFA. Through ABFA, petroleum revenue has built the University of Ghana Medical Centre, the Atuabo Gas Processing Plant, the expansion of Tema Motorway, and free SHS infrastructure in many districts.
Fifth, it gives Ghana investor confidence. A country with 1.55 billion dollars in sovereign savings is seen as disciplined. The World Bank, IMF and credit rating agencies cite the PRMA as one of Africa’s best.
THE BIG QUESTION: WHO CAN ACCESS IT AND HOW?
This is where Ghanaians get confused. You cannot go to Bank of Ghana with a Ghana Card to apply for the fund. It is not like MASLOC or YouStart.
The fund is owned by the Republic of Ghana, managed by the Bank of Ghana under advice from the Investment Advisory Committee and oversight by PIAC — Public Interest and Accountability Committee.
Only the Government of Ghana can access it, through a strict legal process approved by Parliament.
For the Ghana Stabilisation Fund, you can only touch it when there is a shortfall. If actual petroleum revenue collected in a quarter is lower than what was projected in the Budget, the Minister of Finance can, after approval by Parliament, withdraw from GSF to make up not more than 75 percent of the shortfall. So access route is Bank of Ghana Report to Minister of Finance Proposal to Parliament Approval to Budget, not to an individual.
For the Ghana Heritage Fund, you cannot access it now. The law under Section 10 of Act 815 says no withdrawal from GHF until petroleum reserves are depleted. After depletion, Parliament will decide formula to use its returns for future generations. Its principal stays forever as an endowment.
CAN A PRIVATE BUSINESS, A STUDENT, OR A CHURCH APPLY?
No. Direct access by private persons is not allowed. But you benefit indirectly. Through the budget, when GSF stabilizes the economy, your business environment is stable. And through PIAC advocacy, you can petition PIAC to monitor how ABFA is used in your district. PIAC publishes district reports every year.
THE WAY FORWARD
1.55 billion dollars is good, but for a country that has produced oil since 2010, it should be bigger. The problem is Ghana caps GSF at 300 million dollars and any excess goes to Contingency Fund and debt repayment. Some experts say the cap is too low.
What we need now is to increase transparency with Bank of Ghana publishing investment returns quarterly, raise GSF cap to 500 million dollars, ban borrowing against Heritage Fund, and use PIAC more. Every Ghanaian should read PIAC’s annual report. It is the people’s watchdog.
The Ghana Petroleum Funds are not free money sitting in America. They are our insurance and our inheritance. The 174 million dollars in Stabilisation Fund means when oil price crashes tomorrow, your salary can still be paid. The 1.38 billion dollars in Heritage Fund means that even when the oil finishes, your child born today will still have something from the oil his father’s found.
Alexander Afriyie, supervising editor, ghanacrimereport.com and ghanatalk.com