John Jinapor is the Minister of Energy

On July 3, 2025, Ghana marked a historic milestone with the Declaration of Commerciality for the Eban-Akoma oil and gas discoveries in the Cape Three Points Block 4 (CTP-B4).

This breakthrough, confirmed by the Ministry of Energy and Green Transition, signals a new chapter for Ghana’s energy sector, with the potential to drive economic transformation and enhance energy security.

Yet, as we celebrate this discovery, we stand at a critical crossroads. Will the Eban-Akoma find become a catalyst for prosperity, or will it plunge Ghana into the infamous “oil curse” that has plagued many resource-rich African nations?

Drawing inspiration from Norway’s success following its 1969 oil discovery, Ghana must act decisively to avoid the pitfalls of mismanagement, corruption, and economic distortion.

I propose a national dialogue involving all political parties, experts, and communities, culminating in an ironclad agreement to ensure that the proceeds from Eban-Akoma benefit all Ghanaians, regardless of the party in power.

Norway’s Blueprint: Turning Oil into a National Asset

When Norway discovered oil in the North Sea in 1969, it faced a similar moment of opportunity and risk. Unlike many oil-producing nations, Norway transformed its oil wealth into a blessing through deliberate, forward-thinking policies. By 1978, Norway had established a restrictive licensing framework to balance oil development with other industries, ensuring economic diversification.

The government prioritized investments in non-oil sectors like shipbuilding, timber, and fishing, which today account for a significant portion of its GDP.

Most crucially, Norway created the Government Pension Fund Global (commonly known as the Sovereign Wealth Fund) in 1990, channeling oil revenues into long-term savings for future generations.

This fund, now valued at over $1.4 trillion, has shielded Norway from the “Dutch Disease”— where resource wealth inflates currency and cripples other sectors — and ensured economic stability.

Norway’s success rested on three pillars: strong institutions, transparent governance, and a national consensus on resource management.

The country established high-quality institutions, such as the Petroleum Directorate, to oversee the oil sector with technical expertise and accountability. It also resisted the temptation to spend oil revenues recklessly, instead investing in education, infrastructure, and social welfare.

Norway’s democratic culture ensured that political parties and citizens were aligned on the principle that oil wealth belonged to the nation, not a single administration. This disciplined approach has made Norway a global model for escaping the resource curse.

Ghana’s oil journey began in 2007 with the discovery of the Jubilee Field, followed by production in 2010. While this positioned Ghana as an emerging oil giant, the past decade has shown mixed results.

The Jubilee Field alone holds 800 million barrels, with potential reserves reaching 3 billion, yet Ghana has struggled to fully harness this wealth for sustainable development.

The resource curse - characterized by corruption, economic stagnation, and social unrest, looms large. Countries like Nigeria, Angola, and Equatorial Guinea serve as stark warnings, where oil wealth has fueled poverty, conflict, and inequality rather than progress.

Nigeria is Africa’s largest oil producer. Yet, Nigeria grapples with corruption and poverty, with over 70% of its population living on less than $1 a day. This is too tragic.

Ghana’s democratic credentials offer hope, but democracy alone is not enough. The Eban-Akoma discovery, with an estimated 500-700 million barrels of oil equivalent, amplifies both the opportunity and the risk.

Without robust governance and a unified national strategy, Ghana risks repeating the mistakes of others, where oil proceeds are squandered on short-term consumption or siphoned off by elites.

As I noted in a recent post on X, Ghana has a “penchant for spending everything today,” a habit we must break to secure our future.

To transform the Eban-Akoma find into a blessing, Ghana must act with urgency and unity. I propose the following steps:

1. Convene a National Dialogue: Ghana must hold a comprehensive, inclusive national dialogue involving all political parties, oil and economic experts, civil society, traditional leaders, and communities in the Western Region, particularly around Cape Three Points. This dialogue should draw lessons from Norway’s experience and Ghana’s own history since the 2007 Jubilee discovery.

The 2008 fora organized by the government, which sought insights from Norway and others, provide a precedent. The dialogue must address how to manage Eban-Akoma proceeds transparently, equitably, and sustainably.

2. Establish an Ironclad Agreement: The outcome of this dialogue should be a binding, bipartisan agreement on the management of oil proceeds, enshrined in law to transcend political cycles.

This agreement should mandate:

(I) Creation of a Sovereign Wealth Fund: Modeled on Norway’s Pension Fund, Ghana must expand its existing Petroleum Revenue Management Act (PRMA) framework to create a robust savings fund. A fixed percentage of Eban-Akoma revenues - say, 60%—should be allocated to long-term investments in education, healthcare, and infrastructure, with only a portion used for current spending.

(II) Economic Diversification: Invest oil proceeds in non-oil sectors like agriculture, technology, and manufacturing to avoid Dutch Disease. For example, Norway’s investment in shipbuilding and fishing preserved its economic diversity.

(III) Local Content and Community Benefits: Ensure that communities in Cape Three Points and other oil-producing areas directly benefit through job creation, skills training, and infrastructure development. The Joint Venture Partners’ commitment to local content in the Eban-Akoma project is a step forward but must be rigorously enforced.

(IV) Transparency and Accountability: Strengthen institutions like the Petroleum Commission and Public Interest and Accountability Committee (PIAC) to ensure public oversight. Publish all oil contracts, as Norway does, and adopt anti-corruption measures like those recommended by the Carnegie Endowment.

Ghana must bolster its oil sector governance. The Petroleum Commission Act 2011 (ACT 821) is a foundation, but it needs updating to address emerging challenges. Establishing an independent, expert-led body, similar to Norway’s Petroleum Directorate, would ensure professional management of the Eban-Akoma project.

Our past makes and that of many countries like Nigeria must not be lost on us. Ghana’s oil journey since 2010 shows signs of both a blessing and a curse. We must critically assess why some oil revenues have not translated into tangible development and address gaps in local content participation and revenue allocation.

The Eban-Akoma discovery is a once-in-a-generation opportunity to redefine Ghana’s future. We cannot afford to repeat the mistakes of nations that squandered their oil wealth. Norway’s success teaches us that discipline, consensus, and long-term thinking can turn oil into a national asset.

I call on President John Mahama, Parliament, opposition leaders, and all stakeholders to commit to a national dialogue by September 2025, before the Eban-Akoma Plan of Development is finalized.

Let us forge an ironclad agreement that binds every government to use these proceeds for the collective good - investing in our people, diversifying our economy, and securing a prosperous future for generations unborn.

As we embark on this journey, let us heed the words of Norway’s former Prime Minister Jens Stoltenberg: “Oil is a resource that belongs to the future.”

Ghana must act now to ensure that Eban-Akoma’s wealth is not spent today but preserved for tomorrow. Together, we can make Ghana a shining example of how Africa’s resources can fuel transformation, not a tragedy.

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