The Ghana National Gas Company Limited (GNGL) is facing a debt crisis, primarily due to the inability of the Volta River Authority (VRA) to meet its debt service obligations.
As of June 30, 2024, GNGLC’s debt to the Ghana National Petroleum Corporation (GNPC) soured above US$626 million, a significant jump from over US$559 million in the same period last year.
This represents a concerning 12.1 % growth in debt, much higher than the 7.4% recorded in the first half of 2023.
The increase, as highlighted in a Public Interest Accountability Committee (PIAC) report for the first half of 202,4 is attributed to VRA’s ongoing financial challenges, which have hampered its ability to pay for the gas supplied by GNGLC.
The volume of raw gas received by GNGLC from GNPC also saw a slight decline, falling to 22,158,283.5 MMBtu in the first half of 2024 from 22,730,386.70 MMBtu in the corresponding period of 2023.
The invoiced value of gas supplied in the first half of 2024 was US$144 million compared to over US$9. 3 million in the same period last year, GNGLC only received a credit note of US$121 million.
This leaves an outstanding debt of US$22 million for the period, which, when added to the opening balance of US$604 million, culminates in the total debt stock of US$626 million.
The report emphasized the severe implications of this escalating debt for the operational viability of both GNGLC and VRA.
It also raises concerns about potential violations of the Petroleum Holding Funds (PHF) statutory architecture, as proceeds from natural gas sales are a crucial source of revenue for the fund.
Adding to the financial strain, payments received by GNGLC through the Cash Waterfall Mechanism (CWM) have also fallen short.
Cumulative payments through the CWM reached US$10 million by the end of June 2024, covering invoices from November 2023 to April 2024.
This is significantly lower than the US$18.2 million received in the same period in 2023, further exacerbating GNGLC’s financial woes and contributing to the increased debt exposure.
PIAC noted that the situation demands urgent attention from stakeholders to ensure the long-term financial stability of these critical players in Ghana’s energy sector.
It said resolving VRA’s financial difficulties and improving the efficiency of the Cash Waterfall Mechanism are crucial steps towards mitigating the current crisis and preventing further escalation of GNGLC’s debt.
P9
Standard Chartered tops Ghana’s retail banking rankings – KPMG survey
Standard Chartered Bank has emerged as the top performer in retail banking, while Prudential Bank and Stanbic Bank led the SME and corporate banking segments respectively for the year ending 2024.
This is according to the 2024 KPMG West Africa Banking Industry Customer Experience Survey.
The survey assessed banks based on service quality, digital banking efficiency, and overall customer satisfaction. The findings indicate that Ghanaians are prioritizing security, seamless digital experiences, and competitive loan services when choosing their banking partners.
In the retail banking category, Standard Chartered Bank ranked highest with a Customer Experience (CX) score of 81.4, followed by Stanbic Bank at 80.0. Zenith Bank secured third place with 78.7, while CalBank and Fidelity Bank followed with scores of 78.5 and 78.2, respectively.
For SME banking, Prudential Bank topped the rankings with a CX score of 88.0, followed by GTBank at 85.1. CalBank placed third at 84.6, with Access Bank at 83.4 and ABSA rounding out the top five, also at 83.4.
In corporate banking, Stanbic Bank led with a CX score of 80.2, closely followed by Zenith Bank at 80.0. Fidelity Bank ranked third at 79.7, while Access Bank (78.7) and ABSA (78.0) completed the list of top performers.
The survey highlights a growing shift toward digital banking, with customers expecting faster transactions, secure services, and improved loan accessibility. Many banks have enhanced their mobile banking platforms, but the report suggests that personalization and service reliability remain key differentiators.
For SMEs and corporate clients, loan processing speed and favourable interest rates ranked as top priorities. However, delays in loan approvals continue to be a major pain point for businesses seeking quick access to credit.
