1.0 INTRODUCTION

There was a wave of optimism in Ghana in 2007 after Tullow Oil PLC discovered a large offshore oil reserve. The World Bank estimated in 2009 that the oil boom would boost government revenue by a third and transform an economy that stood at $16 billion at the time. In December 2010, when the former president, President Mills opened the first oil tap, he pledged to avoid the mistakes of other African oil producers and save revenue for future generations; adding that Ghana’s oil discovery will be furthered by fiscal prudence. He stated that the oil resource comes with serious responsibilities and the government must ensure oil becomes a blessing, and not a curse. However, five years later, Bloomberg reported that Ghana’s economy was sinking. The government was forced to seek an emergency loan from the International Monetary Fund (IMF) of almost $1 billion, the currency was the worst performer in Africa against the dollar in the first half of the year, and power cuts of twenty four (24) hours at a time was crippling businesses. It invariably becomes imperative to investigate how well the volatile revenues from Ghana’s oil and gas sector have been invested in areas that can support the country’s development and reduce over the country’s development and reduce overreliance of the economy on the oil and gas sector.