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Tuesday, March 4, 2025

We Are Back To Dumsor – Minority

 

The Minority in Parliament has accused the government of plunging the country back into the dreaded power crisis, commonly known as “dumsor,” which has left businesses and households struggling.

They argued that the current erratic power supply is reminiscent of the severe energy crisis Ghanaians endured between 2011 and 2016 under the same administration.

Addressing the media in Parliament yesterday, the Minority expressed disappointment in President Mahama’s recent promise to fix the power challenges, stating that similar assurances in the past yielded no results.

Former Finance Minister, Dr. Mohammed Amin Adam, said even the creation of a separate Ministry of Power under Mahama’s leadership did not alleviate the situation, ultimately leading to the dismissal of the then-Minister for Power in 2015.

He also recalled that in 2016, despite ongoing power outages, the government avoided issuing a load-shedding timetable, instead blaming interruptions on maintenance issues and “localised faults.”

The Minority contended that history is repeating itself, as businesses and individuals are once again being forced to rely on costly alternatives like generators to keep operations running.

“Mr. President, you did not fix dumsor as you claimed in your address. Your record on dumsor is abysmal, unlike your predecessor, Nana Addo Dankwa Akufo-Addo, who kept the lights on,” the Minority asserted.

They warned that the worsening power situation could have dire consequences for small businesses such as hair salons, welders, dressmakers, and other tradespeople who depend on electricity for their daily earnings.

According to Dr. Adam, many have already reported significant financial losses due to the ongoing outages.

In light of the crisis, the Minority called on the government to be transparent and release a load-shedding timetable to enable businesses and individuals to plan accordingly and mitigate the economic impact.

Declining Oil Production

Shifting focus to the petroleum sector, the Minority blamed the decline in crude oil production on poor contractual decisions made during President Mahama’s previous tenure.

They stated that contracts were awarded to 13 companies, most of which lacked the financial and technical capacity to develop Ghana’s oil resources effectively.

However, they praised the Akufo-Addo administration’s efforts between 2018 and 2022, which they said resulted in seven new oil and gas discoveries due to aggressive reserve replacement measures.

These include Pecan South-East (2018) – Estimated at 10 million barrels of oil; Nyankom-1X (2019) – Estimated at 168 million barrels of oil; Afina-1X (2019) – Estimated between 150-300 million barrels of oil; Akoma-1X (2022) – Estimated between 500-700 million barrels of oil; Aprokuma-1X (2022) – Volume yet to be determined; and Eni’s Aprokuma-1X – A double discovery in the Albian and Cenomanian formations.

The Minority noted that the COVID-19 pandemic had slowed down the appraisal of these discoveries.

To mitigate the impact, the NPP government introduced policy incentives and framework amendments to support industry players.

This, they argued, contradicts claims by President Mahama that the NPP government created a “hostile business climate and excessive political interference” in the petroleum sector.

Additionally, the Minority highlighted the Jubilee South-East project, which came on stream in September 2023, adding 30,000 barrels of oil per day and boosting total production from the Jubilee Field to 100,000 barrels per day.

Economic Growth and Power Crisis

The Minority also expressed concern that the ongoing power crisis, or dumsor, could undermine the economic turnaround achieved in 2024.

They warned that several factors could hinder economic growth in the first quarter of 2025, including unreliable power supply, and stalled government projects, with contractors left unpaid despite Parliament approving GH¢68 billion for the government to spend in the first quarter of 2025.

The Minority argued that despite significant revenue at the government’s disposal—including a GH¢5 billion buffer, GH¢8.7 billion collected by the Ghana Revenue Authority in January 2025, and approximately GH¢67 billion borrowed in less than two months—many government projects remain halted, leading to job losses among young Ghanaians.

They called on the government to adopt a new economic management strategy to prevent further setbacks and ensure sustained economic growth.

By Ernest Kofi Adu, Parliament House

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