Ghana’s ambitious Petroleum Hub Project, signed in June 2024, was touted as a transformative initiative set to revolutionize the country’s energy sector and position Ghana as a hub for energy trading in West Africa. With a whopping US$12 billion deal signed for the first phase of the project, many Ghanaians were hopeful for the promised 780,000 jobs, foreign investment, and improved local infrastructure. But as we reflect on the legacy of former President Nana Akufo-Addo, one question lingers: Was this an opportunity mismanaged?
The Promise of Prosperity
The Petroleum Hub Project, spanning 20,000 acres in the Jomoro Municipal area, was designed to include three refineries, five petrochemical plants, storage facilities, and a port infrastructure. Minister of Energy, Dr. Matthew Opoku Prempeh, assured Ghanaians that this project would not only boost energy security but also attract massive foreign investment and foster local entrepreneurship. The project was marketed as a game-changer for Ghana’s energy sector.
However, critics have raised concerns about the opaque manner in which the deal was negotiated and the seeming lack of accountability mechanisms to ensure the promises are kept. While the project is private sector-led, it remains heavily reliant on government facilitation and oversight—an area where the Akufo-Addo administration often fell short.
Unrealized Potential
Akufo-Addo’s administration had a track record of initiating grandiose projects with little follow-through. The famous Agenda 111 hospitals, aimed at constructing 111 new hospitals across the country, remains incomplete, with most sites abandoned or progressing at a snail’s pace. Skepticism about the Petroleum Hub project stems from this history of unfulfilled promises and stalled projects.
Despite the massive scale and potential of the Petroleum Hub, there is little evidence that the necessary groundwork has been laid. Land acquisition and compensation for affected communities, environmental impact assessments, and clear timelines for execution remain murky. Without addressing these foundational issues, the project risks becoming another unfulfilled dream.
Neglecting the Communities
One of the critical aspects of the Petroleum Hub is its location in the Western Region, an area historically rich in natural resources but plagued by underdevelopment and neglect. The Paramount Chief of the Western Nzema Traditional Council, Awulea Annor Adjaye III, rightly emphasized the need for value addition and wealth creation for the local people.
Under Akufo-Addo’s leadership, similar promises were made in the oil and gas sector, yet the Western Region continues to struggle with poor infrastructure, inadequate healthcare, and unemployment. What assurance do the people of Jomoro have that this time will be different?
A Question of Priorities
The estimated cost of the entire Petroleum Hub project is a staggering US$60 billion. While the project’s long-term benefits are undeniable, one cannot ignore Ghana’s pressing short-term needs. The country faces rising debt levels, an economic crisis, and widespread unemployment. Could these funds have been better allocated to address immediate challenges, such as revitalizing agriculture, improving healthcare, or building affordable housing?
Moreover, the global shift towards renewable energy raises questions about the long-term viability of such a massive investment in petroleum infrastructure. By 2036, when the project is expected to be fully operational, the global demand for fossil fuels may have significantly declined. Was this a short-sighted decision that ignored global trends in favor of political optics?
The Need for Accountability
As Ghana transitions to new leadership under President-Elect John Dramani Mahama, it is crucial that this project is subjected to rigorous scrutiny. Ghanaians deserve transparency on the terms of the agreement, clear timelines, and accountability for every dollar spent.
The Petroleum Hub Project has the potential to transform Ghana’s energy sector and create jobs, but only if it is managed with integrity and a commitment to delivering tangible benefits to the people. Akufo-Addo’s administration may have laid the groundwork, but it will be up to the new government to ensure that this ambitious project does not become another example of wasted potential.
Conclusion
The Petroleum Hub Project represents both a promise and a warning. While it holds immense potential to boost Ghana’s economy, the risks of mismanagement, lack of community involvement, and failure to adapt to global trends cannot be ignored.
Akufo-Addo’s administration may have championed this initiative, but history will judge him not by the deals signed but by the results delivered—or the lack thereof. For now, Ghanaians can only hope that this project doesn’t become another reminder of unfulfilled promises.
Let’s demand accountability. Let’s demand progress. Ghana deserves better.
