The Central Bank of Ghana has provided a provisional revenue analysis on levy and non-levy returns, showing a decline in tax-based income, comparing the 2012 posting of 12.1b Ghanaian Cedi, to the current 11.6b Cedi.
This implies a 3.7 percent fall in the fortunes that the government had set itself for this fiscal year.
The Monetary Policy Committee (MPC) profiles the shortfall as a caustic result of lower postings from the oil sector, which in 2011 had set to account for 6 percent of the total revenue of the nation. Also at the center of this miss-of-target grossing were the non-levy returns which came short by several billion Cedi, with that of grants amounting to 1.3b Cedi against an earlier projection of 1.5b.
Ghana Oil Sector
The oil sector in Ghana, unlike that of its neighbor Nigeria, is a relatively new one, and thus has only begun to show its real muscle in the country’s economy.
Two years ago, the country produced 660 million barrels of crude petroleum, against an expected rise in production capacity in a couple of years, to five billion units.
Boosting the stakes of the fossil energy dispensation is the 2007 finding of a block that apparently contains a 3-billion-barrel capacity, which upon going full scale will become a major booster of the sector.
Since its refurbishment in the year 1989, one of the largest wells in the country at Tema, under the Tema Lube Oil Company has attracted high profile trustee interests including the inaugural Tema Lube Oil Company, Mobil, BP, Shell, as well as, two Ghanaian public interests, including the Ghana National Petroleum Corporation. The three foreign interests accumulate a shareholding capacity of 48%.
2011 marked the real financial year when Ghana began in earnest to extract the natural resource, which would see the commodity chip in 6 percent of the country’s total income in that particular year.
As a reflection of its mixed-economy status, the country relies on both tax and non-tax income in diverse sectors, including gold mining and oil, which form part of the major sectors that drive the economy, the former traditionally and the latter recently. Mining also failed to produce sufficient returns for the period under this review and thus the current shortfall.