Tamale: A study conducted by the Department of Public Administration of the University of Ghana Business School (UGBS) has recommended that the government focus on fewer, high-impact projects that can be fully executed using the Annual Budget Funding Amount (ABFA), rather than spreading funds across numerous minor initiatives.
According to Ghana News Agency, the study emphasized that instead of funding several thousand minor initiatives with insufficient financial backing, the government must prioritize fewer, high-impact projects that can be fully implemented using ABFA funds. It proposed the development of a dedicated ABFA investment plan that outlines strategic national priorities for exclusive petroleum revenue funding over a five- to ten-year period.
The study also recommended amending the Petroleum Revenue Management Act to explicitly prohibit the integration of ABFA with the general government budget, stating that mixing ABFA funds with other budgetary resources undermines transparency and accountability in the use of oil revenues. These recommendations were presented at a dissemination workshop in Tamale, attended by stakeholders from academia, youth groups, and persons with disabilities, among others.
The ABFA is a portion of Ghana’s petroleum revenues designated for development projects. The study, funded by the Ford Foundation, focused on the political economy of Ghana’s oil sector, specifically examining the distributive consequences of oil revenues and their impact on balanced regional development. Led by Professor Abdul-Gafaru Abdulai of UGBS, the research team included Dr. Adam Salifu of the University of Professional Studies, Accra, Dr. Ishmael Ayanoore of the University for Development Studies (UDS), and Dr. Mohammed Ibrahim and Dr. Gerald Arhin, both from the University of Manchester.
Presenting the findings, Professor Abdulai stated that the study assessed public perceptions of inequality and evaluated how oil revenue was addressing or failing to address these disparities. He noted that it also analyzed the regional distribution of oil-funded investments in key sectors such as health, education, roads, and agriculture. Despite Ghana receiving over $10 billion in oil revenue, the study found that oil wealth had not significantly improved the socio-economic conditions of most Ghanaians.
The findings revealed that while oil-funded agricultural projects had disproportionately benefited poorer regions in the north, poor implementation had limited their transformative impact. The findings also highlighted the absence of a clearly defined formula for equitable regional allocations, as spending patterns were said to be influenced more by political and bureaucratic discretions and short-term electoral motives rather than strategic investment decisions aimed at closing development gaps.
The study showed that oil-funded investments in health and road infrastructure had been heavily concentrated in Accra, to the detriment of other regions. Professor Jasper Abembia Ayelazuno, Dean of the School of Communication and Media Studies at UDS and a discussant during the dissemination of the findings, praised Professor Abdulai and his team for their in-depth research. He urged the government to implement the study’s recommendations to better harness the country’s oil resources for equitable national development.