By Solomon Gumah
Tamale, May 28, GNA – A study conducted by the Department of Public Administration of the University of Ghana Business School (UGBS), has recommended that government focused on fewer, high-impact projects that can be fully executed using the Annual Budget Funding Amount (ABFA) instead of spreading funds across numerous minor initiatives.
The study emphasised that “Instead of funding several thousand minor initiatives with insufficient financial backing, government must prioritise fewer, high-impact projects that can be fully implemented using ABFA funds.”
It proposed the development of a dedicated ABFA investment plan that outlined strategic national priorities for exclusive petroleum revenue funding over a five- to ten-year period.
It 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 undermined transparency and accountability in the use of oil revenues.
The recommendations were presented at a dissemination workshop in Tamale on Tuesday, which was attended by stakeholders from academia, youth groups, and persons with disabilities amongst 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, 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), 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 the disparities.
He said it also analysed 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 said while oil-funded agricultural projects had disproportionately benefited the 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 instead of 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 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.
GNA
Edited by Eric K. Amoh/ Kenneth Odeng Adade