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Nigeria: Shell Agrees To Sell Gas Distribution Business To Vaaris Energy
Shell Petroleum B.V. has agreed to sell its entire interest in Shell Nigeria Gas Group to Nigerian energy company Vaaris Energy Limited, Shell said in a statement.
The transaction, subject to regulatory conditions and approvals, forms part of Shell’s strategy to simplify its portfolio and focus investment on businesses where it has competitive strengths.
Shell Nigeria Gas distributes natural gas to industrial and commercial customers in Nigeria.
“Shell Nigeria Gas has served industrial and commercial customers in Nigeria for more than 25 years, supported by the commitment and expertise of its people,” said Elohor Aiboni, Shell’s country chair in Nigeria.
“We believe this agreement provides a much stronger platform for the business’ next chapter under new ownership.”
Aiboni said Shell would continue to focus on its deepwater and integrated gas businesses in Nigeria.
Established in 1998, Shell Nigeria Gas Limited operates about 170 kilometres of gas pipelines across Ogun, Abia and Rivers states and supplies more than 130 connected industrial and commercial customers.
The transaction includes Shell Nigeria Gas Holding B.V., established in 2019, which holds all but one of the shares in Shell Nigeria Gas Limited.
Shell said the business focuses on domestic gas distribution and does not engage in upstream gas production, liquefied natural gas or international gas trading.
Shell Nigeria Gas Group will remain part of Shell and continue operating as usual until the transaction is completed.
Vaaris Energy has interests across the oil and gas value chain and an existing operational presence in Nigeria, the statement said.
Shell’s remaining interests in Nigeria include deepwater operations and its stake in Nigeria LNG.
Malawi: ESCOM Signs Grid Connection Deals For 125 MW Of Thermal And Solar Power
Malawi’s Electricity Supply Corporation (ESCOM) has signed transmission connection agreements with AZA Power Solutions and Quantel Renewable Energy for projects expected to add a combined 125 megawatts to the national grid.
The agreements, signed in Blantyre, cover a 75 MW multifuel thermal power plant and a 50 MW solar project aimed at improving electricity supply and diversifying the country’s generation mix.
The AZA project, being developed by UR Energy and Wärtsilä, will connect to the grid through a 132-kilovolt connection at ESCOM’s existing 132/33 kV Nanjoka substation in Salima.
The project is expected to increase Malawi’s baseload generation capacity by 17% and reduce unserved energy — electricity demand that cannot be met — by about 60%.
ESCOM Chief Executive William Kaipa said the additional capacity would help address the generation deficit contributing to load shedding and power outages.
“The project will provide dependable baseload power while diversifying Malawi’s energy mix and reducing vulnerability to droughts and low water levels that affect hydropower generation,” he said.
AZA Power Solutions Managing Director Abel Manumbu said the plant would strengthen baseload supply and reduce outages for households and businesses.
“We are not just building a power plant. We are building opportunities,” he said, pledging that AZA would be a dependable partner to ESCOM.
The second agreement covers Quantel Renewable Energy’s 50 MWac photovoltaic plant, which will connect to the grid at the New Bwengu substation in Mzimba District.
Quantel’s partners include Sri Lanka’s Vidullanka PLC and Denmark’s Frontier Energy.
Kaipa said the solar project would help ease electricity supply challenges in the Northern Region and reduce reliance on hydropower.
The plant would supply electricity closer to local demand centres, easing pressure on long-distance transmission lines, he said.
Quantel Chief Executive Patridge Shycal described the agreement as a milestone in moving the project towards delivery.
“Today is a defining milestone for the Quantel Project,” he said. “We are moving from development to actual delivery.”
Ghana: Crude Oil Output Rises About 30%-Energy Minister
Ghana’s crude oil production has risen by about 30% to an average of roughly 120,000 barrels per day, reversing five years of decline, Minister for Energy and Green Transition Dr. John Abdulai Jinapor said.
Speaking during a fireside chat at African Energy Week in Cape Town, South Africa, Jinapor attributed the recovery to government efforts to secure investment and approve new development plans.
The event which runs from Oct. 12 to 16, has brought together policy makers, investors, energy professionals, researchers and ministers.
“We have seen a continued systematic decline in oil output over the past five years. But this year, I am happy to announce that oil production has increased by about 30%,” he said.
Jinapor said an investment agreement had translated into an approved development plan, with work under way.
Production figures for Ghana’s three producing fields showed mixed results between June 2025 and June 2026.
Average daily output from the Jubilee field rose to 76,032.27 barrels in June 2026 from 60,898 barrels a year earlier.
Production at the TEN fields fell to 14,535.90 barrels per day from 16,420, while output from Sankofa-Gye Nyame increased to 25,257.89 barrels per day from 24,463.
In September, Jubilee produced an average of 75,402.97 barrels per day, while TEN and Sankofa-Gye Nyame produced 14,704.02 and 27,517 barrels per day, respectively.
The recovery follows a $2 billion memorandum of understanding signed with Jubilee partner Kosmos Energy in 2025.
The agreement, covering extensions of the Jubilee and TEN licences to 2040, paved the way for further investment and increased supplies of affordable gas for domestic power generation.
An amended Jubilee development plan provides for up to 20 additional wells.
In its August results, Kosmos said the Jubilee partnership was seeking a rig for a drilling campaign of up to 10 wells in 2027–2028, expected to begin in mid-2027.
The company also maintained its 2026 group capital expenditure budget at $350 million as it seeks to increase production, control costs and reduce debt.
In September, Jubilee produced an average of 75,402.97 barrels per day, while TEN and Sankofa-Gye Nyame produced 14,704.02 and 27,517 barrels per day, respectively.
The recovery follows a $2 billion memorandum of understanding signed with Jubilee partner Kosmos Energy in 2025.
The agreement, covering extensions of the Jubilee and TEN licences to 2040, paved the way for further investment and increased supplies of affordable gas for domestic power generation.
An amended Jubilee development plan provides for up to 20 additional wells.
In its August results, Kosmos said the Jubilee partnership was seeking a rig for a drilling campaign of up to 10 wells in 2027–2028, expected to begin in mid-2027.
The company also maintained its 2026 group capital expenditure budget at $350 million as it seeks to increase production, control costs and reduce debt.
Jinapor said the government was working to establish a more competitive, predictable and business-friendly environment while protecting Ghana’s national interests.
“These efforts are yielding encouraging results, with significant investment commitments, including US$3.5 billion towards expanding operations and drilling new wells, alongside positive developments in crude oil production.
“Our focus is to sustain this momentum, strengthen local participation and deepen domestic value addition by refining more of our crude locally to support industry, create jobs and enhance energy security.”
Speaking alongside Jinapor, Kosmos Chief Executive Andy Inglis said the licence extensions had given the company greater confidence to invest, particularly in technology. The agreement also allowed Kosmos to focus on gas supplies, he said. “As we deal with energy security, it also comes down to energy affordability. We agreed to supply low-cost gas to the country,” Inglis said. Jinapor said Ghana was seeking to attract further upstream investment by improving commercial terms and building trust with operators. “We are trying to make the sector more attractive and mutually beneficial,” he said, adding that the government was engaging with Chevron, Shell and CNOOC. He said proposed fiscal reforms had received his approval and that of the finance minister and would be submitted to cabinet the following week before going to parliament. “We will sign the agreement with Chevron once we have received parliamentary approval,” Jinapor said. He added that Ghana had held discussions with Petrobras and was seeking to conclude a deal.Ivory Coast Seeks More Than $10 Billion In Energy Investment By 2030
Ivory Coast is seeking more than $10 billion in energy investment by 2030 to expand production, refining, storage and distribution and strengthen supplies to regional markets, Karim Coulibaly, Deputy Managing Director of state-owned Petroci Holding, said on Wednesday.
Speaking at an investment panel at African Energy Week 2026 in Cape Town, South Africa, Coulibaly said the country wanted partners that could provide financing and technical expertise across the energy value chain.
“Our country offers proven resources, growing demand, access to regional markets and a national partner committed to delivery,” he said.
Upstream opportunities include the Calao and Calao South developments, farm-in opportunities in blocks CI-523 and CI-525, and an opportunity to become operator of block CI-26.
Petroci is also seeking investment in pipelines, liquefied natural gas facilities, gas processing, power generation, liquefied petroleum gas storage and distribution, industrial gas supply and integrated logistics.
The Baleine field remains central to the country’s production growth. Operated by Eni alongside Petroci and Vitol, the project’s third phase received final investment approval in May 2026.
The planned $4 billion development targets peak production of 150,000 barrels of oil per day and 200 million cubic feet of gas per day.
Jean Michel, Managing Partner and Chief Executive of KeysFinance Partners, said investment opportunities extended beyond resource development to the infrastructure and services needed to bring projects into operation.
“We have a number of opportunities across the entire value chain, including exploration, development, construction, operations, maintenance and logistics,” he said.
Petroleum storage and distribution projects are intended to strengthen domestic supplies and expand cross-border trade.
State-owned Gestoci, which manages national petroleum reserves and fuel storage infrastructure, is developing depot projects with capacities of 40,000 cubic metres in Odienné and San Pedro, alongside rehabilitation of the Bouaké depot.
The projects form part of a strategy to decentralise storage capacity and improve access to inland and neighbouring markets.
“These projects will increase supply to our neighbors while delivering shorter supply routes and lower logistics costs across the region,” said André Noël Koné, commercial coordinator at Gestoci.
“We aim to strengthen supply security and position Ivory Coast as a regional petroleum logistics hub.”
A proposed second refinery in San Pedro, with a planned capacity of 170,000 barrels per day and an estimated cost of $5 billion to $7 billion, would expand the country’s refining capacity.
Existing refiner Société Ivoirienne de Raffinage (SIR) is also prioritising capacity expansion, fuel quality and environmental performance, said Myriam Kouame, its director of commercial and economic affairs.
“We strive to deliver cleaner fuels while supporting growth and increasing local value,” she said.
Olivia Eti, a policy officer at the Ministry of Mines, Petroleum and Energy, said the investment drive reflected the government’s broader economic ambitions.
“Our government has an ambition to make mining resources and energy a firm pillar of the country’s economy,” she said.
Russian Strikes Cut Power To 600,000 Ukrainians After U.S. Diesel Deal
More than 600,000 people in Ukraine have been cut off from electricity following Russian strikes on October 13 and 14, President Volodymyr Zelenskyy said, days after the Trump administration authorized certain transactions involving Russian diesel exports while urging Kyiv to stop attacking Russian refineries.
Zelenskyy said Russia had launched 39 ballistic missiles and more than 120 drones at Kyiv and Kharkiv, damaging at least 26 power facilities and four oil and gas sites.
He warned that power outages could spread further on Wednesday.
A ballistic missile struck Kyiv’s CHP-4 power plant on Tuesday evening, Zelenskyy said.
Ukrainian energy company DTEK reported emergency power outages in several districts.
Russia’s Defence Ministry said its forces had struck seven Ukrainian energy facilities and a data centre.
Zelenskyy said Ukraine’s air defences detected the missiles only as they approached the city and that international partners had provided no early warning.
Over the weekend, the Trump administration reportedly warned Kyiv and European allies that it could suspend intelligence sharing and halt European purchases of U.S. weapons if Ukraine did not stop attacking Russian energy facilities.
U.S. President Donald Trump also said over the weekend that Russia and Ukraine had agreed to an energy ceasefire. Zelenskyy disputed reports of an agreement, while the Kremlin did not confirm one.
A White House official told Axios that the proposal covered only oil refineries, describing it as “refinery for refinery.” Zelenskyy said on Monday that Russia had already violated the proposed arrangement.
In a social media post on October 9, Trump outlined plans for Russian diesel supplies of 300,000 metric tons immediately, 500,000 tons in November and 1 million tons thereafter.
The post did not mention a ceasefire or a halt to attacks on energy infrastructure.
The Kremlin’s account of a call with Trump, as reported by Reuters, made no reference to an agreement by either side to stop such attacks.
On October 10, Trump blamed Zelenskyy for high diesel prices, saying the Ukrainian leader “wants to make problems for our farmers, our ranchers with diesel fuel.”
“Don’t hit refineries. There’s plenty of targets,” Trump told reporters. He also said: “I suggest they get a new leader who can make a deal.”
Ghana: VRA Plans 2,000 MW Of Thermal Power Capacity By 2028
Ghana’s Volta River Authority (VRA) has received government approval to develop 2,000 megawatts of thermal power capacity between 2026 and 2028, its chief executive told energynewsafrica.com.
The planned expansion forms part of a government strategy to increase state participation in the power sector, Chief Executive Officer Ing. Edward Ekow Obeng-Kenzo said.
Preparations for the projects were at an advanced stage, he said, adding that the state-owned power utility would finance them internally.
“We will fund the project internally,” he said.
VRA’s existing generation assets include 1,180 MW of hydropower, 1,330 MW of thermal power and 37 megawatts peak (MWp) of solar capacity.
Completion of the planned projects would increase the authority’s installed generation capacity to more than 4,000 MW, reinforcing its position as Ghana’s largest power producer.
U.S.: Trump Accuses Iran Of Directing Attacks On Saudi Arabia To Drive Up Oil Prices
U.S. President Donald Trump has accused Iran of directing renewed attacks by Yemen’s Houthi rebels on Saudi Arabia, alleging that the aim is to drive up global oil prices ahead of U.S. elections.
In a statement on his Truth Social platform on Tuesday, Trump suggested that the Iran-aligned Houthis had resumed attacks at Tehran’s direction after a prolonged period of relative calm.
“The Houthis are behaving very badly. I thought they learned their lesson a year ago when we bombed the HELL out of them and, at their request, stopped,” Trump said.
“They’ve been silent for a long time, but now they’ve emerged again, probably at the behest of Iran,” he added.
Trump alleged that the attacks were intended to disrupt global energy markets and influence the political environment in the United States by raising energy costs.
He also criticised Iran’s economy and military capabilities, describing the country as a failing nation.
Trump warned that the Houthis could face consequences for their actions.
“I’ll be there after the Elections, and I will never forget!” he said.
Saudi Arabia is one of the world’s largest crude oil exporters. Attacks on its energy infrastructure or disruptions to shipping routes in the Middle East can raise concerns about global oil supplies and contribute to price volatility.
The Houthis have previously targeted Saudi infrastructure and vessels in the Red Sea, a strategic corridor for international oil and petroleum product shipments.
Ghana: Fault Causes Fire At GRIDCo’s Mallam Bulk Supply Point
A fault triggered a fire that damaged a transformer at Ghana Grid Company (GRIDCo) Limited’s bulk supply point at Mallam, a suburb of the capital, Accra, early on Wednesday, the company said.
The incident, which occurred at about 2:36 a.m. on October 14, disrupted electricity supply to parts of Accra served by the substation, GRIDCo said in a statement.
Videos shared on social media by Alex King Nartey of the Ghana National Fire Service (GNFS) and viewed by Energy News Africa showed smoke billowing into the air as firefighters battled the blaze.
Firefighters brought the fire under control after several hours.
GRIDCo said its personnel and officers from the GNFS responded to the incident and extinguished the fire.
Electricity supply has since been restored to some affected areas, while work continues to reconnect the remaining areas, the company said.
GRIDCo’s engineers are investigating the cause of the fire, and the company has begun the process of replacing the damaged transformer.
“GRIDCo sincerely apologises for the inconvenience caused and thanks all affected customers and stakeholders for their patience and understanding,” the statement said.
Microsoft Targets Wider AI Adoption In Africa’s Energy And Mining Sectors
Microsoft is seeking to expand the use of artificial intelligence in Africa’s oil and gas, power and mining sectors by connecting industrial systems with business data to improve decision-making and asset performance, a company adviser said on Monday.
Speaking at a Microsoft-hosted session at African Energy Week 2026, Gargi Mishra, the company’s frontier industry adviser for energy and resources, outlined how businesses could move beyond individual productivity tools and integrate AI into operational workflows.
Mishra said connecting data generated across operations with AI could help companies identify problems earlier and improve asset management.
“When information from industrial systems and business applications can be brought together, teams have greater visibility into what is happening across their assets and can use that information to identify problems earlier and improve how they manage operations,” she said.
For energy producers and utilities, these applications could help identify patterns, anticipate equipment failures and support maintenance planning. Integrating operational technology data with enterprise platforms could also provide a more complete picture of asset performance.
The session examined how companies could move beyond isolated AI pilot projects and deploy the technology more widely.
Microsoft presented its Copilot tools, alongside Azure, Copilot Studio and Power Apps, as platforms for connecting information, developing tailored applications and deploying AI agents for specific tasks.
Gareth Ireland, a senior AI specialist at Microsoft, said integrating AI into existing systems and processes was central to its adoption.
“The question is not simply how to introduce an AI model, but how to integrate it into the systems and processes people already use,” he said.
Ireland said industrial applications required connections between data, software and workflows so that AI could support employees and operational goals.
Wider deployment also requires reliable data infrastructure and clear controls over access to information, he said. Cybersecurity and data governance were particularly important when AI tools interacted with sensitive business information or systems supporting critical infrastructure.
The discussion also highlighted the need for oversight of AI-generated results, particularly in operational settings where inaccurate information could have commercial or safety consequences.
Effective adoption would depend on combining AI tools with reliable data, existing industrial infrastructure and employees’ expertise.
South Africa’s Moagi Named Chair Of APPO Oil Companies Forum
South African National Petroleum Company (SANPC) Chief Executive Godfrey Moagi has been appointed chair of the African Petroleum Producers’ Organization (APPO) National Oil Companies CEOs Forum.
Moagi succeeds Ghana National Petroleum Corporation (GNPC) Chief Executive Kwame Ntow Amoah.
The appointment was announced on Monday during APPO’s eighth annual NOCs CEOs Forum at African Energy Week in Cape Town.
In his acceptance address, Moagi outlined three priorities: developing commercially viable refining capacity, accelerating the establishment of the African Energy Bank and strengthening workforce skills through cooperation among African national oil companies.
He said investment in refineries must be supported by viable markets and urged African producers to address their exposure to disruptions in international energy supply routes.
“We cannot afford to have refineries in every single country without also building credible, viable markets,” he said.
Moagi said the African Energy Bank would be critical to financing strategic energy infrastructure, particularly as some Western financiers withdraw support for oil and gas projects.
“The bank will help us fund the very projects we are struggling to finance when Western funders say they won’t fund us,” he said.
He also called for closer cooperation among national oil companies to develop the technical skills needed across Africa’s energy value chain.
“When confronting challenges, we must look across our borders for solutions,” Moagi said.
“I intend to chair this forum as a convener for all of Africa, not as a representative for South African interests.”
Amoah, the outgoing forum chair, highlighted cooperation between GNPC and PetroSA, a SANPC subsidiary, on Ghana’s offshore Jubilee development as an example of collaboration between African national oil companies.
He urged members to coordinate on access to capital and workforce development, citing the planned launch of the African Energy Bank and a pan-African local content framework in Brazzaville.
“We no longer need to develop projects in isolation: we must find ways to build together,” Amoah said.
Equatorial Guinea Seeks Investors For Remaining Oil Blocks, Gas Projects
Equatorial Guinea has fewer than seven exploration blocks still available, down from more than 20 a year ago, Minister of Mines, Hydrocarbons and Energy Antonio Oburu Ondo said at African Energy Week in Cape Town, South Africa.
Speaking at the event’s Global Energy Leaders Forum, Oburu Ondo said the acreage had been awarded mainly to U.S. and European companies, with a smaller number of Asian firms also securing blocks.
“When I was here last year, we had more than 20 blocks available. Today, we have only a handful of them, I believe less than seven,” he said during a panel moderated by Acha Leke, chairman of McKinsey & Company Africa.
The uptake follows the ministry’s decision in May to award acreage through direct negotiations rather than licensing rounds.
The minister also sought Japanese and U.S. investment in the country’s Gas Mega Hub, which brings together gas resources for processing at the EG LNG plant at Punta Europa. These include the cross-border Yoyo-Yolanda resource shared with Cameroon.
“I can see the opportunity here of increasing the processing capacity, not only of EG LNG, but also building different plants,” he said.
Oburu Ondo identified liquefied petroleum gas (LPG) storage on the mainland as another investment opportunity, saying the country currently relies on a converted vessel for storage.
“One investment that is very clear that can be done is to build LPG storage in the mainland,” he said.
He added that the EG-27 discovery remained open to investors, with talks continuing with ConocoPhillips on a non-exclusive basis.
Japanese trading house Marubeni holds a 6.067% stake in EG LNG through its UK-registered subsidiary.
Yasuhiro Hashimoto, special adviser to Japan’s minister of economy, trade and industry and the ministry’s chief representative for Africa, said the continent was becoming an increasingly important source of energy supplies for Japan.
He outlined Japan’s response to supply disruptions as diversifying suppliers, expanding markets and strengthening emergency preparedness. A stable business environment was essential to deeper cooperation, he added.
Oburu Ondo also discussed Equatorial Guinea’s growing energy investment relationship with Washington over the past year.
Joshua Volz, special envoy for global energy integration at the U.S. Department of Energy, said U.S. financing institutions, including the Office of Strategic Capital, were pursuing closer partnerships with African downstream projects, particularly in refining.
“When the United States takes an equity position in a project, that’s a long-term commitment,” Volz said.
Volz said local capital participation sent a strong signal to foreign investors. Oburu Ondo said regulatory certainty and legal stability could carry similar weight in capital-intensive projects.
“This is the time to capture the momentum,” the minister said, “so that we make sure that we are trusted, not only to attract businesses, but to keep the businesses in Africa.”
Oil Prices Fall As Traders Weigh Russian Diesel Supplies Against Gulf Risks
Oil prices fell on Tuesday, marking their first decline in nearly a week, as traders weighed the prospect of additional Russian diesel supplies against risks to energy infrastructure and shipping in the Gulf.
Brent crude futures fell $1.18, or 1.1%, to $105.47 a barrel by 0625 GMT, while U.S. West Texas Intermediate crude futures dropped $1.17, or 1.3%, to $92.57.
Both benchmarks gained nearly $2 a barrel in the previous session, with Brent settling at its highest level since Sept. 15.
U.S. President Donald Trump said Russia had agreed to supply diesel to global markets. His administration temporarily eased sanctions on Russian diesel, potentially providing relief to tight global fuel markets.
ING analysts, however, expressed scepticism about the Russia-Ukraine energy ceasefire, citing reports of Russian strikes on Ukrainian energy targets since Trump announced the agreement.
U.S. lawmakers from both parties said Trump’s deal with Russian President Vladimir Putin appeared to violate legislation barring Russian energy imports until Moscow ends its aggression against Ukraine.
Meanwhile, concerns about Gulf energy infrastructure and shipping persisted following reported strikes by Iran-aligned Houthis on Riyadh’s international airport over the weekend and attacks on tankers near the Strait of Hormuz.
The incidents raised fears of renewed disruption to Middle East supplies following a recovery in September.
Tim Waterer, chief analyst at KCM Trade, said additional Russian diesel supplies and steadier Saudi flows were providing some relief, but concerns about further attacks on Gulf shipping and pipelines continued to dominate market sentiment, according to Arab News.
“Until we see clearer signs of de-escalation, the path of least resistance still leans higher,” he said.
Ghana: GRIDCo CEO Named 2026 Energy Sector Recovery Programme Champion Of The Year
Ghana’s Ministry of Energy and Green Transition has named Frank A. Otchere, chief executive of Ghana Grid Company Limited (GRIDCo), the 2026 Energy Sector Recovery Programme (ESRP) Champion of the Year (Power Sector).
The ministry recognised Otchere’s leadership and contribution to the resilience and reliability of Ghana’s electricity supply system, according to a citation accompanying the award.
The citation highlighted GRIDCo’s response to the April 2026 fire at Akosombo, saying the company quickly mobilised technical and operational teams to establish a temporary transmission connection.
The connection enabled the Akosombo Generating Station to reconnect to the grid and helped avert a wider national power system crisis, the citation said.
It also commended Otchere’s commitment to operational efficiency, system reliability and prudent management of the transmission network.
The award was presented at a sector-wide retreat in Ho attended by board chairpersons, board members, regulators, heads of energy sector institutions and ministry officials.
GRIDCo Deputy Chief Executive Abdul Samed Ibrahim received the award on Otchere’s behalf, accompanied by board member Daniel Atchulo.
In a statement, GRIDCo’s board, management and staff welcomed the recognition and thanked Otchere for his service to the company and the country.
It also commended Otchere’s commitment to operational efficiency, system reliability and prudent management of the transmission network.
The award was presented at a sector-wide retreat in Ho attended by board chairpersons, board members, regulators, heads of energy sector institutions and ministry officials.
GRIDCo Deputy Chief Executive Abdul Samed Ibrahim received the award on Otchere’s behalf, accompanied by board member Daniel Atchulo.
In a statement, GRIDCo’s board, management and staff welcomed the recognition and thanked Otchere for his service to the company and the country.
Ghana: Afenyo-Markin Calls For ECG Reforms To Curb Losses, Ease Burden On Consumers
Former Electricity Company of Ghana (ECG) Board Chairman Hon. Alexander Kwamena Afenyo-Markin has proposed three measures to improve the state-owned utility’s finances and operations, urging it to address inefficiencies before seeking further tariff increases.
In a Facebook post on Sunday, Afenyo-Markin, the minority leader in Ghana’s parliament, called for strict enforcement of the revised Cash Waterfall Mechanism, renegotiation of legacy take-or-pay power purchase agreements and automatic monthly deductions by the finance ministry to settle debts owed to ECG by public institutions.
He said ECG’s difficulties stemmed from systemic inefficiencies that required a national dialogue on structural reform rather than partisan blame.
Consumers had faced cumulative tariff increases exceeding 28% over the past 19 months without the underlying structural problems being resolved, he said.
Citing ECG’s financial results, Afenyo-Markin said its loss after tax narrowed to GH¢2.52 billion in 2025 from GH¢8.25 billion in 2024, a reduction of nearly 70%. Revenue rose to GH¢22.1 billion from GH¢19.6 billion.
New connections increased by 31.3% to 222,979, while prepaid customers accounted for 53.5% of the customer base, he said.
Afenyo-Markin described the improvements as real but not yet secure, urging ECG to plug revenue leakages before seeking tariff increases or new levies.
“Reform has achieved what tariff increases alone could not,” he said.
He also called for tighter spending controls and the retention of procurement reforms introduced during his tenure.
Afenyo-Markin said that when he became chairman, vendors could present bills of lading for goods delivered to the port without adequate verification of the consignments.
The arrangement left ECG with financial obligations before taking custody of the goods, exposing it to mounting port charges, delays and the risk of loss, damage or disputes, he said.
“I led the Board to tie contractual completion and payment to verified delivery at ECG’s own facilities,” he said.
“That reform must be sustained,” he said
He urged full implementation of ECG’s Loss Reduction Programme, including boundary metering, smart prepaid meters and systematic electricity theft detection.
These measures, alongside strict enforcement of the Cash Waterfall Mechanism, would help recover lost revenue and reduce the need to pass costs on to consumers through higher tariffs, he said.
Afenyo-Markin also commended ECG Managing Director Kwame Kpekpena and his team for recently convening a luncheon for former managing directors and board chairpersons to share ideas on improving the utility’s performance.