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Vivian Kai Lokko, Editorial Lead - Business Outlook Africa
Opinion

How Ghana’s Fuel Underdogs Became Market Leaders

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For decades, Ghana’s downstream petroleum industry followed a familiar script. A few dominant brands controlled the pumps, set the tone on quality, and commanded fierce customer loyalty. Local oil marketing companies (OMCs) operated on the fringes—present, but rarely powerful. That story has now been shattered. Over the past five years, Ghana’s petrol and diesel market has undergone a quiet but seismic shift. Competition has intensified, market leadership has changed hands, and indigenous OMCs—once dismissed are now driving the industry’s most dramatic gains. Consumers are paying less at the pump and a new generation of local champions has emerged. This transformation did not happen by chance. It was triggered by regulation, sharpened by competition, and sustained by investment in quality. Breaking the ‘poor quality’ myth For years, smaller indigenous OMCs battled a stubborn stigma—that their fuel was inferior, adulterated, or unreliable. Today, that perception is rapidly fading. Many local players have invested heavily in quality control, logistics, and supply chain discipline—and the payoff is visible. Zen Petroleum stands out as a powerful example. Its diesel meets ultra-low sulphur European specifications, specially imported for the mining sector. Once unthinkable for a local brand, this level of quality is now becoming a competitive weapon. Regulatory enforcement has also played a crucial role. In 2012, the National Petroleum Authority (NPA), the industry’s regulator introduced the Fuel Marking Program to combat adulteration by tracking chemical concentrations in fuel. Tests results from inspections conducted at retail outlets following the introduction of the fuel marking program showed a failure rate of about 30%. By the end of 2025, this had reduced to just 2 percent a turnaround that has restored consumer confidence. The great market shake-up Nothing illustrates the industry’s transformation more clearly than the numbers. In August 2020, GOIL towered over the petrol market, selling more than 27 million litres in a single month. It was followed by Vivo, Total, Q8, and Zoe Petroleum. Indigenous brands like Star Oil, Zen, and Benab trailed far behind—important, but not dominant. Five years later, the hierarchy has been flipped. According to NPA data for January to November 2025 (RON 91 petrol): * Star Oil surged to the top, selling over 422 million litres * GOIL followed with 241 million litres * Vivo recorded 209 million litres * Total sold 147 million litres * Zen Petroleum broke into the top five with 102 million litres Star Oil—once outside the top ten—has overtaken Goil the long-time market leader. Zen has leapt from ninth place into the industry’s elite – top 5. It is a stunning reversal few would have predicted just half a decade ago. Behind them, a new wave of local competitors—Benab, Dukes, IBM, Frimps, and Allied Oil—is closing the gap. Others, including JP and Icon though not yet in the top ten, are winning customers with sharply competitive pricing that often undercuts even the biggest brands. How local players cracked the code Over the years, foreign-owned OMCs and GOIL dominated through deep pockets, aggressive advertising, and entrenched brand loyalty. That advantage is no longer guaranteed. Local OMCs have become deliberate and strategic—investing in: * Bold rebranding and station upgrades * Heavy visibility on social media * Loyalty schemes and promotions * Cleaner, more modern stations * Aggressive but targeted pricing * Improved incentives for franchise operators The result is a shift in perception. Middle-class consumers, once skeptical, are now willing to switch—and stay. Policy winds at their backs Government policy has accelerated this transformation. The move to full deregulation created a more level playing field, allowing price competition and operational flexibility. Then, in October 2024, Parliament passed Ghana’s Local Content Law, restricting OMC ownership to Ghanaians. Only legacy operators—Puma, TotalEnergies, Vivo Energy and So Energy were exempted, having existed before the law came into force. For local companies, the message was clear: this market now belongs to them. The hidden cost of a price war Yet success has brought new tensions. Intense competition has triggered a fuel price war, driven by selective price reductions that favour highly competitive urban centres. Rural and less competitive areas despite contributing equally to the Unified Petroleum Pricing Fund (UPPF)—often pay more. The Institute for Energy Security (IES) warns that this trend undermines Ghana’s Price Uniformity Policy and weakens the very mechanism designed to protect vulnerable consumers. Other stakeholders argue the competition is becoming unhealthy and insist Price Floor Regulation introduced in 2024 to check this must not be abolished. A new era, new questions Ghana’s downstream petroleum sector is no longer defined by legacy dominance or foreign control. Indigenous OMCs have rewritten the rules—through quality, branding, and ruthless competition. The next challenge is clear: how to sustain this momentum without sacrificing fairness, stability, and national cohesion. – By Vivian Kai Lokko

Explainers

Why Ginger and Charcoal Prices Keep Rising in Ghana

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Two everyday essentials are increasingly becoming expensive. And many people are asking: why? The Everyday Reality Ginger adds that spicy kick to food – shito, soups, kelewele, drinks, medicines and many more. 
Charcoal fuels pots in millions of homes — especially in rural areas. These are not luxury items.
They are daily necessities. Yet both have become painfully expensive. Ginger: The Spice Driving Inflation Ginger is no longer just a spice. According to the Ghana Statistical Service, it is among the top ten items contributing 78.6% to inflation. Year-on-year inflation hit 72% in January 2026 — the highest among its peers with high inflation, in January alone, it contributed 6.8% to national inflation. That’s significant for a single food item. So What’s Behind the Price Surge? Several factors are at play: Poor rainfall has reduced harvests in Volta and Ashanti. In the Ashanti region, illegal mining has reduced available farmland and lower supply means higher prices. To meet demand, traders now import ginger from Côte d’Ivoire and Togo.
Imported ginger is often larger and more appealing — but more expensive. And it’s not just households buying. Ghana’s beverage and confectionery industries use large quantities of ginger — from non alcoholic to alcoholic drinks, growing demand for local beverages like sobolo,to biscuits, toffees, and even medicines. Industrial buyers often pay premium prices. Today, a sack of ginger sells for between ₵3,500–₵4,000, and spiked to ₵5,000 during the last festive periods. Charcoal: The Fuel That Refuses to Cool Down Charcoal is also seeing record price hikes. In January 2026 year-on-year inflation was 53.7%. 
It ranks among the top contributors to national inflation, it alone contributes 13.6% to the national basket. For many households, charcoal is not optional. Why Is Charcoal So Expensive? Demand remains high. Despite efforts to promote LPG and electricity, 77% of households still rely on primary fuels, only 28.7% use clean energy. 
In rural areas, just 11% have switched to clean energy. Charcoal remains the most accessible cooking fuel. Charcoal production requires large quantities of hardwood. In northern Ghana, trees like the Siena are heavily harvested.
It takes four units of wood to produce one unit of charcoal. Deforestation and environmental concerns are limiting supply, add transportation from areas such as Afram Plains, Buipe, and Kintampo — and prices rise even further. What Are These Prices Telling Us? The rising prices of ginger and charcoal are not random. They reflect: • Climate challenges
• Industrial demand
• Deforestation
• Slow adoption of clean energy For households, this means higher food costs, tighter budgets, and health concerns linked to primary fuel use. As Ghana navigates inflationary pressures in 2026, the cost of these kitchen staples remains a pressing concern. Urban or rural everyone feels it. Because inflation isn’t just data. It’s what’s cooking at home.

Economy

From Gold to Grain: Who’s Powering Ghana’s Economy?

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Ghana’s economy is still growing — but the pace is slowing. Provisional data from the Ghana Statistical Service shows that in November 2025, the country’s year-on-year growth rate hit 4.2%, down sharply from 7.1% in November 2024. On the surface, the headline number signals moderation. But the real story lies beneath the aggregate figures — in the sectors that are driving growth and those that are holding it back.   Agriculture: The Quiet Stabilizer Amid the slowdown, agriculture stands out as a resilient force. The sector grew 4.1% in November 2025, slightly higher than 3.8% in 2024, contributing 32.4% of the total 4.2% growth. This steady performance underscores the sector’s importance: • Improved resilience against economic shocks • Continued expansion despite challenges • Vital role of food production in Ghana’s stability Nearly one-third of Ghana’s economic growth in November came from farms, crops, livestock, and fisheries.   Industry: The Sharpest Slowdown Industry, historically a key engine of growth, tells a different story. Growth in November 2025 barely registered at 0.4%, down from 6.2% in 2024. The slowdown is mainly due to declines in mining and quarrying, which once fueled industrial expansion. Industry contributed only 2.5 percentage points to overall growth, signaling weak momentum in Ghana’s extractive sector. For investors and policymakers, this is a cautionary note: without a rebound in industrial activity, sustaining broader economic growth may prove difficult.   Services: Still Leading, But Losing Steam The services sector continues to drive growth, expanding 6.7%, though this is slower than the 10.2% growth recorded last year. This sector, encompassing finance, trade, ICT, transport, and professional services, remains the largest contributor, accounting for 57.7% of total growth. While services are still expanding, the slowing pace hints that Ghana’s reliance on this sector alone may not be enough to maintain strong economic momentum.   What This Means for Ghana The numbers tell a story of moderation rather than contraction, but raise important questions: • Can industrial activity rebound? • Will agriculture continue to carry more weight? • Is Ghana entering a broader slowdown, or simply transitioning to a services-led economy? The message is clear: sustaining growth will require revitalizing industry while protecting gains in agriculture and services. Ghana is growing, but the balance of growth is shifting — from the traditional strength of mining and industry to the quiet stabilizer of agriculture and the dominant, but cooling, services sector. The future of the economy depends on how these sectors adapt and support one another in the months and years ahead.

Agriculture

Ghana’s Cocoa Crisis: What Happens Next?

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  Ghana’s cocoa sector is at a turning point. On February 11, 2026, Cabinet held an emergency meeting over deepening challenges in the cocoa industry — from falling global prices to mounting debts and liquidity crises at Ghana Cocoa Board (COCOBOD). Just months ago, farmers were earning GH¢58,000 per tonne after Ghana raised prices to prevent cocoa smuggling to Côte d’Ivoire, which had announced higher rates. But the global market turned. World cocoa prices have fallen sharply — from about US$7,200 per tonne to nearly US$4,100. That collapse has made Ghana’s cocoa uncompetitive and exposed deep financial weaknesses within COCOBOD.   What Went Wrong? • A projected 800,000-tonne crop in 2023/24 delivered just 432,145 tonnes — a shocking 45% shortfall. • Rollover contracts locked in at US$2,661 per tonne led to losses exceeding US$1 billion. • COCOBOD defaulted on obligations, including bridge financing from the Ministry of Finance. • The old syndicated loan model failed, leaving the sector dependent on buyer pre-financing. In a nutshell falling prices, debt, and liquidity shortages created a huge storm.   The Immediate Impact Effective February 12, 2026, the new producer price for the remainder of the 2025/26 season is: • GH¢41,392 per tonne • GH¢2,587 per bag The Producer Price Review Committee says farmers will now receive 90% of gross FOB (based on US$4,200), cushioning the blow from the market collapse.   The Big Reforms Government is not stopping at price adjustments. Cabinet has announced sweeping reforms: • A new COCOBOD Bill to automatically adjust producer prices based on world prices and exchange rates. • A shift from syndicated loans to domestic Cocoa Bonds to fund purchases. • Mandatory local processing — at least 50% of cocoa to be processed in Ghana from 2026/27. • Revival of Produce Buying Company (PBC) and Cocoa Processing Company (CPC). • Conversion of nearly GH¢5 billion in legacy debt to equity. • Transfer of GH¢4.35 billion cocoa roads liabilities to the Ministry of Roads. • Forensic audit and criminal investigations into the past eight years of COCOBOD operations. Why the Reforms Cocoa is Ghana’s economic backbone. These reforms aim to: • Protect farmer incomes • Restore COCOBOD’s balance sheet • Boost local processing and job creation • Reduce dependence on volatile global markets • Strengthen transparency and accountability The question now is not just about price cuts — it’s about whether these reforms can finally reset Ghana’s cocoa sector for long-term sustainability.

Real Estate

When Accommodation Costs More Than Tuition: The Student Housing Struggle in Accra

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Rent issues in Accra have become a growing concern, affecting the daily lives of many Ghanaians. While much of the focus is on general housing costs, one segment that often escapes scrutiny is the private hostel market — where students at institutions such as the University of Ghana (UG) and the University of Professional Studies, Accra (UPSA) are increasingly feeling the financial strain. With a student population exceeding 70,000 at the University of Ghana alone, providing on-campus accommodation for all students remains a major challenge. The university’s In-Out-Out-Out policy — which guarantees traditional hall residence for first-year students for only one academic year — means continuing students (Levels 200–400) must find alternative housing. The result: a booming private hostel market and growing concerns about affordability. The Numbers: What Students Are Paying Around University of Ghana (Legon): Single room: GH¢9,500 – GH¢27,769 per year Two-in-a-room: GH¢10,257 – GH¢21,329 per year Four-in-a-room: GH¢5,955 – GH¢8,876 per year Additional charges: JCR dues, registration and booking fees (varies by hostel) Even within the same occupancy category, prices differ significantly. One two-in-a-room facility may charge GH¢10,000, while another charges GH¢15,000. Pricing differences are influenced by: Whether the room is self-contained or shares washrooms and kitchens Balcony access Private kitchen or kitchenette Room size Air conditioning availability These factors explain the wide price variations within the same accommodation categories. What Hostel Fees Typically Cover                                                                                                                                                                       In some hostels, fees include: Water (and sometimes electricity) Generator/standby plant services DSTV JCR dues However, this is far from uniform. In many facilities, electricity is billed separately. Students must top up prepaid meters in addition to paying substantial accommodation fees. Although JCR dues are capped at GH¢100 by the university, they are sometimes charged separately rather than included in the main hostel fee. Off Legon: Slightly Cheaper, But At a Cost Students who move to areas such as Okponglo, Madina, Adenta, and Haatso often pay slightly lower rents. Some off-campus facilities charge: GH¢4,500 for two-in-a-room every four months GH¢5,500 for one-in-a-room every four months Monthly electricity averaging around GH¢50 But lower rent comes with trade-offs. Transport costs increase overall expenses, and students must also consider safety, convenience, and commuting time. Students Speak Out For many students, the rising cost feels disproportionate. “The hostel fees are a bit too much. It’s unreasonable to pay such huge amounts just to stay somewhere, and sometimes pay less for academics.” Another student questioned the value for money: “Fees keep increasing, but when you visit the facilities, nothing has improved. If prices are skyrocketing, infrastructure should reflect that.” What Hostel Operators Say Hostel managers argue that the cost of borrowing is the main driver of high prices. According to operators, interest rates on loans used to construct hostel facilities have in the past reached as high as 40 percent. “Most of what students pay goes into servicing loans. It’s expensive to build, and interest rates are very high.” They also note that beyond the regulation of JCR dues, there are no clear caps on hostel pricing. The market largely determines accommodation costs. Government and University Response In response to the accommodation crisis, the Mahama-led government earlier this year announced plans to construct a 10,000-bed student hostel at the University of Ghana through international partnerships. Government has also signaled plans to regulate private hostel fees to stabilize accommodation costs across Accra. Meanwhile, the University of Ghana is pursuing additional on-campus solutions, including the SRC Hostel Initiative aimed at expanding student housing capacity. The Vice Dean of Student Affairs has indicated that the university may consider reviewing the In-Out-Out-Out policy once the proposed 10,000-bed facility becomes operational. As demand continues to outpace supply, students remain caught between rising private hostel fees and limited on-campus options. The challenge now is balancing: Access Affordability Quality And sustainable investment in student housing Because for many students in Accra, the cost of accommodation is no longer just a housing issue — it is shaping their entire university experience.

Albert Essien, Former Group Managing Director of Ecobank
Banking & Finance

Fix Credit Risk or Repeat the Crisis — Albert Essien’s Warning to Ghana’s Banks

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Former Group Managing Director of Ecobank, Albert Essien, has identified weak risk management — particularly credit risk — as the single biggest downside of Ghana’s banking sector. Reflecting on Ghana’s recent banking sector crisis, Mr Essien argued that the core challenge facing the industry is not regulatory compliance alone, but how effectively banks manage lending risk. According to him, while many bankers are well-trained in financial theory and risk analysis, sustainable banking requires more than technical knowledge. It requires character. “I think one of the biggest downsides for our bank sector is risk management — especially credit risk. It’s about learning the theory, yes, but also building the character,” he stated. Mr Essien noted that non-performing loans (NPLs) remain elevated — still hovering in the region of the 20 percent range — and questioned why the industry continues to struggle with credit quality. “We should ask ourselves why. How do we treat it? How do we reduce it? That is something the Institute should think about,” he said, urging professional bodies to convene experts and develop targeted programmes to address the persistent risk management gap. Beyond credit risk, the former banking executive warned that the sector is entering a new era defined by rapid automation and artificial intelligence. Having witnessed the transition from ledger books to spreadsheets, Essien says the next transformation is already underway. “We are in great automation. The future is about understanding how artificial intelligence will change the banking system,” he explained. He revealed that some financial institutions are already deploying algorithms to support lending decisions — a shift that demands new technical skills from bankers. “Banking will basically remain what it is — taking deposits, keeping some, lending some. But the mode of delivery is what is changing,” he added. His message is clear: Ghana’s banking sector must strengthen credit discipline, build ethical leadership, and embrace AI-driven innovation — or risk repeating the mistakes of the past.      

Ashanti Region
Business

Security Taskforce Moves Against Overcharging Drivers as Ashanti Region Fare Enforcement Widens

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  Authorities in Ghana’s Ashanti Region have stepped up enforcement measures against commercial transport operators accused of charging passengers fares above officially approved rates. The intensified action, led by officers from the National Security Secretariat in collaboration with the Kumasi Metropolitan Assembly (KMA), forms part of a broader effort to regulate public transportation costs and protect commuters from exploitation.   The special operation commenced on Monday, January 26, with joint security teams deployed across key transport corridors within the Greater Kumasi area. Officials say the initiative is designed to identify, sanction and deter drivers and transport unions who fail to adhere to fare structures set by regulatory bodies. The exercise is also expected to be rolled out to additional districts in the region as monitoring and enforcement activities expand. Objective of the Exercise According to regional authorities, the clampdown aims to restore discipline in the commercial transport sector, where complaints of arbitrary fare hikes have become increasingly common. Passengers have frequently reported being charged above standard rates, particularly during peak hours, fuel price fluctuations, and periods of high demand. By reinforcing compliance with approved fare guidelines, officials hope to stabilise transport costs and reduce financial pressure on daily commuters. The operation is being carried out through coordinated roadside inspections, spot checks at major terminals, and engagement with transport unions. Security personnel and municipal officers are also verifying vehicle documentation and fare charts displayed inside commercial vehicles to ensure transparency and accountability. Vehicle Impoundments and Investigations As part of the enforcement drive, several vehicles suspected of violating fare regulations have been impounded. These vehicles have been towed to the Kumasi Metropolitan Assembly yard located within the premises of the Ashanti Regional Coordinating Council. Owners and drivers of the affected vehicles are currently undergoing administrative and legal investigations to determine the extent of their infractions. Authorities emphasise that impoundment is not solely punitive but also serves as a deterrent to others who may consider flouting established fare directives. Depending on the findings of investigations, sanctions may range from fines and warnings to prosecution under applicable transport and consumer protection laws. Official Warning to Transport Operators Speaking to local media, the Ashanti Regional Deputy Security Coordinator, Alhassan Tapsoba, issued a firm caution to commercial drivers and transport unions, urging them to comply with approved pricing structures. He stressed that while the security taskforce is prepared to work cooperatively with compliant operators, deliberate refusal to follow regulations will attract legal consequences. Tapsoba noted that drivers who persist in charging unauthorised fares risk being handed over to the police for further action. He added that the approach of the taskforce combines flexibility with firmness — rewarding compliance while penalising repeated violations. The message, he said, is intended to send a clear signal that enforcement will remain consistent rather than temporary. Broader Implications for Commuters and the Transport Sector The renewed enforcement initiative reflects ongoing concerns about the cost of urban transportation and its impact on household budgets. In cities like Kumasi, where a large proportion of residents rely on commercial minibuses and taxis for daily mobility, fare increases can significantly affect living expenses. Consumer advocacy groups have welcomed stricter monitoring, arguing that predictable and regulated fares help maintain fairness in the system. Transport unions, on the other hand, often cite rising operational costs — including fuel prices, vehicle maintenance, and spare parts — as reasons for fare adjustments. Authorities acknowledge these challenges but maintain that any changes must be officially sanctioned through established regulatory processes rather than unilateral decisions by individual drivers. Expansion of Monitoring Efforts Officials indicate that the current operation is only the first phase of a longer-term compliance strategy. Plans are underway to introduce periodic checks and collaborative engagements with transport associations to prevent future infractions. Public awareness campaigns may also accompany enforcement actions to educate both drivers and passengers on approved fare structures and reporting channels for violations. By strengthening oversight and reinforcing regulatory standards, regional authorities aim to promote fairness, order and consumer protection within the commercial transport sector. The continued presence of security personnel at transport hubs signals that fare compliance will remain a priority as the exercise progresses across the Ashanti Region.

John Dramani Mahama
National

Mahama Reports Progress in Crackdown on Illegal Mining as Rivers Show Early Signs of Recovery

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  Source: Business Outlook President John Dramani Mahama has expressed optimism over Ghana’s ongoing efforts to combat illegal small-scale mining, commonly referred to as galamsey, stating that recent government measures are beginning to yield measurable environmental improvements. According to the President, early indicators suggest that some polluted rivers and degraded forest areas are gradually regaining stability following intensified enforcement and policy reforms. The remarks were delivered on Friday, January 30, 2026, during the graduation ceremony at the Ghana Military Academy, where President Mahama addressed newly commissioned officers as well as senior military and government officials. His speech underscored the seriousness with which the administration views environmental protection, describing the illegal mining crisis as both an ecological and national security concern. Environmental Impact and Government Response Illegal mining has for years posed significant environmental challenges across Ghana, contaminating water bodies with heavy metals, stripping forest reserves of vegetation, and damaging farmlands that sustain rural livelihoods. In his address, the President characterised the country’s natural resources as a collective inheritance that requires careful stewardship, noting that unchecked mining activities have placed immense pressure on ecosystems and public health. To confront the issue, the government established the National Anti-Illegal Mining Operations Secretariat (NAIMOS), a coordinating body designed to synchronise enforcement, policy direction, and community engagement. President Mahama explained that the current strategy goes beyond arrests and seizures, combining strict law enforcement with education campaigns, technological monitoring tools, and economic alternatives for communities historically dependent on informal mining. Security Measures and Enforcement A major component of the anti-galamsey campaign has been the classification of certain forests and river corridors as security zones. This designation allows for increased surveillance and rapid deployment of security personnel in areas identified as high-risk. The President revealed that permanent military installations have been set up in several affected regions to deter illegal operations and ensure sustained oversight rather than temporary crackdowns. Law-enforcement agencies have also intensified prosecutions, targeting not only field operators but also financiers and equipment suppliers who enable illicit activities. Authorities say this broader legal approach is intended to dismantle entire networks rather than focusing solely on individuals working at mining sites. Equipment confiscations, site closures, and coordinated patrols involving the military, police, and environmental agencies have become more frequent in mining-prone districts. Signs of Ecological Improvement President Mahama cited specific waterways, including the Ankobra and Offin rivers, as examples where gradual improvement in water clarity and sediment levels has been observed. Environmental officials have attributed these early gains to reduced dredging activities and stricter monitoring of riverbanks. While full restoration is expected to take years, the administration views the incremental changes as evidence that sustained intervention can reverse environmental degradation if maintained consistently. Experts caution, however, that recovery remains fragile and requires long-term investment in reforestation, soil rehabilitation, and water treatment programmes. Environmental scientists have noted that polluted rivers often need extended remediation efforts before they can fully support aquatic life and safe human use. As a result, government agencies are working with local assemblies and civil society organisations to expand clean-up initiatives and promote responsible land management practices. Community Engagement and Alternative Livelihoods Beyond enforcement, the administration has emphasised the importance of providing viable employment options to communities that have relied on informal mining for income. Vocational training, agricultural support schemes, and small-business grants are being introduced in selected regions to reduce economic dependence on illegal extraction. Officials believe that combining economic incentives with environmental awareness will foster more sustainable behaviour over time. Public education campaigns are also being rolled out through schools, traditional authorities, and media platforms to highlight the long-term consequences of illegal mining on health, food security, and water availability. These outreach efforts aim to cultivate a culture of environmental responsibility among younger generations while encouraging community leaders to participate actively in monitoring local activities. Call for National Unity Despite the reported progress, President Mahama stressed that the campaign is far from complete. He urged citizens, traditional leaders, and private-sector stakeholders to support ongoing initiatives, describing environmental preservation as a shared national obligation. According to him, safeguarding Ghana’s natural resources is not solely a governmental task but a collective moral and civic responsibility that spans generations. The administration’s position signals that the anti-galamsey drive will remain a central policy priority, blending enforcement with education and economic reform. While challenges persist, officials maintain that coordinated action and sustained political will are gradually setting the country on a path toward environmental recovery and more responsible resource management.

NNPC Ltd
Economy

Nigeria: NNPC Unveils 2026 Gas Master Plan to Drive Industrial Growth, Energy Stability and Investment

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  The Nigerian National Petroleum Company Limited (NNPC Ltd) has introduced a new strategic framework aimed at transforming Nigeria’s natural gas industry into a central pillar of economic expansion and energy security. The initiative, known as the Gas Master Plan 2026 (NGMP 2026), was officially presented on Friday at the NNPC Towers in Abuja, drawing participation from government officials, energy executives and private-sector stakeholders. Industry observers described the launch as a significant policy and implementation milestone, signalling a stronger national commitment to harnessing Nigeria’s extensive gas reserves for domestic development while enhancing the country’s position in the international energy market. The programme is designed to move beyond broad policy declarations and focus on measurable execution across the entire gas value chain — from exploration and production to distribution and end-use consumption. Strategic Focus of the Plan According to NNPC Ltd, the NGMP 2026 outlines a structured pathway for converting natural gas resources into tangible economic value. Key pillars of the framework include infrastructure expansion, supply reliability, investment mobilisation, and the development of both domestic and export markets. The company stated that the plan emphasises operational efficiency, commercial sustainability and coordinated industry participation as essential elements for long-term success. In an official statement released by the company’s Chief Corporate Communications Officer, Andy Odeh, the initiative was described as a shift toward disciplined implementation rather than policy rhetoric. The plan is also intended to strengthen Nigeria’s competitiveness in the global gas market while addressing internal energy needs such as electricity generation, transportation fuel alternatives and industrial consumption. Government Position and Policy Alignment Speaking at the unveiling ceremony, the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, characterised the new blueprint as a decisive transition from policy articulation to practical delivery. He noted that Nigeria possesses some of Africa’s largest proven natural gas reserves and stressed that the central challenge has been converting that potential into dependable infrastructure and economic outcomes. Ekpo highlighted that the plan aligns with the Federal Government’s broader Decade of Gas Initiative — a national programme intended to deepen gas utilisation across sectors and position the resource as a bridge fuel in Nigeria’s energy transition strategy. The minister emphasised that reliable gas supply, flexible export capabilities and strategic partnerships would be vital to achieving sustainable industrialisation and energy security. Production Targets and Investment Goals NNPC Group Chief Executive Officer Bashir Ojulari described the NGMP 2026 as an execution-focused roadmap aimed at unlocking Nigeria’s extensive hydrocarbon potential. He revealed that the country currently holds approximately 210 trillion cubic feet (Tcf) of proven gas reserves, with estimates suggesting the figure could rise significantly as exploration continues. Ojulari stated that the plan supports presidential directives to increase national gas production to 10 billion cubic feet per day by 2027 and 12 billion cubic feet per day by 2030. He added that the initiative is expected to stimulate more than 60 billion dollars in new investments across the oil and gas sector before the decade concludes. Priority areas include cost optimisation, reserve growth, enhanced supply for power generation, and expanded availability of compressed natural gas (CNG), liquefied petroleum gas (LPG) and mini-LNG solutions for industrial and commercial use. Industry Reception and Collaboration Private-sector stakeholders at the event expressed optimism regarding the plan’s potential economic impact. Representatives from independent petroleum producers and multinational energy companies welcomed the structured approach, noting that a stable and transparent policy environment is crucial for attracting long-term capital and technological expertise. Industry leaders also emphasised the importance of a full value-chain strategy that connects upstream production with downstream distribution and end-user markets. Evolution of Earlier Frameworks The Gas Master Plan 2026 builds on the foundation of the original Nigerian Gas Master Plan introduced in 2008, which sought to maximise the economic benefits of the country’s gas reserves. The updated version reflects regulatory and market changes introduced under the Petroleum Industry Act, as well as evolving global energy trends that increasingly recognise natural gas as a transitional fuel in the shift toward cleaner energy systems. NNPC Ltd indicated that the NGMP 2026 will serve as the principal guide for coordinated development, policy execution and value creation in Nigeria’s gas sector over the coming decade. By integrating infrastructure development, regulatory reforms and investment incentives, the framework aims to strengthen Nigeria’s energy resilience while supporting industrial growth and broader economic diversification.