Monday October 25, 2010. As part of the ongoing Ashesi Economic Lecture Series, Chief Tax Policy Advisor at the Ministry of Finance and Economic Planning (MOFEP), Dr. Joe Amoako Tuffuor delivered a lecture dubbed, The Oil and Gas Industry in Ghana. In his speech, Dr Tuffour focused on the management of Ghana’s oil revenue. He stated in his introduction, “When hungry, be careful not to consume all your eggs and seeds. That may be a sure recipe for famine”. This implies that the oil revenue must be managed very well; it should not be dependent on Ghana’s current economical state.
In his address, Dr. Tuffour argued that much of the oil revenue should be left untouched temporarily until the nation determines the best use for the funds. A savings account for the oil revenue was one of the remedies he suggested as a good management practice. He also explained the Ghana Petroleum Revenue Management Bill, which provides a pricing formula, accountancy and transparency guidelines for measuring the quantities of crude oil. The fiscal regime will be applied to determine how revenues are shared and will ensure accountability. Proceeds from oil revenue should transform our institutions and prevent the natural resource curse, which can lead to corruption, economic instability and even civil wars.
At the end of the presentation, Frank Anamuah-Koufie, (2013 CS), said, “it was very interesting to know that they are not keeping us in the dark… and that they had chosen a policy, which will provide for future generations and not just limited to the present generation.” The presentation was well delivered and the message sunk in. Most people walked away well informed about the progress of Ghana’s oil project.