Petroleum Revenue Management Manual
The discovery of oil in commercial quantities in Ghana in 2007 brought forth an expectation that Ghana will join the group of oil-rich countries in the world and boost its economy with revenue obtained from the industry.
Notwithstanding the high revenue benefits from natural resources, there is also a “paradox of plenty” or “resource curse”. For instance, countries like Chile, Botswana, and Norway with prudent and transparent management practices have benefited from their natural resource wealth. On the other hand, countries like Nigeria, Chad, Liberia and Angola continue to be poor due to poor resource governance.
Transparency and Accountability in oil sector operations are necessary to improve governance in oil – producing countries. To chart a better course for development and economic growth, it is expedient for Ghana to utilize its oil revenues efficiently to avoid the resource curse. In a bid to achieve this, the Government of Ghana (Parliament) passed into law the Petroleum Revenue Management Act (PRMA), 2011. The Act provides a framework for the collection and management of petroleum revenue from upstream and midstream petroleum operations. The rationale behind the Act is to ensure responsible, accountable and sustainable use of the petroleum resources so that both present and future generations of the Republic of Ghana can benefit from the oil discovery. The PRMA establishes the Petroleum Holding Fund, the Annual Budget Funding Amount, Ghana Petroleum Funds and the Ghana Infrastructure Investment Fund needed to adequately manage oil revenues received by the government.