Ghana to scrap Gold-for-Oil programme, says energy minister

Ghana’s Energy Minister, John Jinapor, has announced plans to cancel the Gold-for-Oil programme, an initiative by the previous administration that allowed the country to trade gold reserves for petroleum products. 

The bartering scheme, through which the previous government aimed to rebuild gross international reserves and reduce demand for dollars after its currency plunged, has faced mounting scrutiny over transparency concerns, prompting the new government to consider replacing it with a more accountable framework. 

“The current Gold-for-Oil programme we’ve inherited—we will discontinue it. Take it from me,” Jinapor told Accra-based Joy News. 

However, he noted that an immediate overhaul was not feasible, as a viable alternative needed to be put in place.  

“If you only set up a Gold Board [a flagship initiative under the government’s economic revitalisation agenda], you have to go to Parliament to secure legal backing,” he said.

“In the interim, we are trying to shape the current system, reduce losses, and make it more transparent. But ultimately, we want to replace this entire Gold-for-Oil programme.”

Jinapor also sought to address concerns about Ghana’s international financial reserves and ongoing engagement with the International Monetary Fund (IMF), stressing that the new system would align with global financial best practices.  

According to the minister, the proposed Gold Board would oversee all revenues generated from the tonnage of gold purchased annually, holding the funds in a dedicated account as hard currency to support the import of oil and other essential products.  

On Ghana’s strategic oil reserves, he said the Bulk Oil Storage and Transportation Company (BOST) currently has stock available but acknowledged the need to strengthen reserves.  

“The last time I checked, we had about three weeks’ worth of stock—not the optimum level, but we are still building up. It takes time to strengthen our reserves. Our goal is for BOST to maintain a certain minimum percentage in the market while collaborating with the private sector to keep a steady supply of reserves,” he said.