No petroleum revenue allocated to industrialisation in 2024 – PIAC

The government did not allocate petroleum revenue to industrialisation in 2024, despite identifying it as a priority, the Public Interest Accountability Committee (PIAC) has observed. 

The committee noted that allocations to the Industrialisation Priority Area have been declining and consistently receiving the least Annual Budget Funding Amount (ABFA) since 2020. 

“This trend does not demonstrate the essence of prioritisation and it provides a strong basis for the review of the priority areas as a prerequisite for the next selection,” PIAC stated in its 2024 annual report on petroleum revenue management. 

The report said the Ministry of Finance explained that due to the non-utilisation of allocations in 2022 and 2023, no funds were allocated to industrialisation in 2024. 

From 2020 to 2022, funds under the Industrialisation Priority Area were directed to the Ghana Integrated Aluminium Development Corporation (GIADEC), Ghana Integrated Iron and Steel Development Corporation (GIISDEC) under the Ministry of Lands and Natural Resources, and the One-District-One-Factory (1D1F) initiative under the Ministry of Trade and Industry. 

“During this period, an amount of GH¢22 million was allocated to GISDEC, out of which GH¢9.29 million was used. An amount of GH¢10.24 million was utilised by the Ministry of Trade and Industry out of an allocation of GH¢17.2 million,” the ministry said. 

In 2023, GH¢1.6 million was allocated to GIADEC, but none was utilised. 

“Similarly, there was no utilisation out of an allocation of GH¢166 million to the Ministry of Trade and Industry. Due to the non-utilisation of allocations made by the Ministry of Finance in 2022 and 2023, the Ministry decided not to make allocations to the Industrialisation Priority Area in 2024,” PIAC highlighted. 

Government priority areas for 2023-2025 include Agriculture (including Fisheries), Physical Infrastructure and Service Delivery in Education and Health, Road, Rail and Other Critical Infrastructure Development, and Industrialisation. 

Total ABFA disbursed to Agriculture, including Fisheries, in 2024 amounted to GH¢600.052 million, representing 7.89 percent of the total ABFA. 

Physical Infrastructure and Service Delivery in Education and Health received GH¢2.4 billion, accounting for 31.50 percent of utilised ABFA. 

Roads, Rail and Other Critical Infrastructure received GH¢4.6 billion, making up 60.49 percent of the ABFA used in 2024. 

Road Infrastructure under this category received GH¢1.53 billion, representing 20.10 percent of ABFA utilisation.

Source: GNA

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