What Namibia Can Learn from Ghana’s Petroleum Revenue Governance

As namibia prepares to harness the economic potential of its petroleum resources, valuable lessons can be drawn from other countries.

A prime example is Ghana, where petroleum revenue governance has become a case study in balancing development, accountability and long-term national interest.

While Nigeria and Singapore both gained independence in the 1960s, their development trajectories are markedly different.

Nigeria discovered oil early, but decades of poor governance have impeded progress.

In contrast, Singapore, lacking natural resources, became a global leader in oil infrastructure and finance, thanks to visionary planning and disciplined governance.

Ghana found commercial oil in 2007. Recognising its troubled history with mineral resource mismanagement, it took a different approach.

The government launched nationwide consultations involving traditional leaders, students, teachers, civil society and think tanks to determine how best to manage the newfound wealth.

PUBLIC PARTICIPATION

These consultations laid the groundwork for the Petroleum Revenue Management Act (2011), a groundbreaking law that governs the collection, allocation, investment and oversight of petroleum revenue.

The act enshrines spending rules and established two dedicated savings vehicles: The Ghana Stabilisation Fund (GSF) and the Ghana Heritage Fund.

The Stabilisation Fund is designed to cushion the national budget against oil price volatility, while the Heritage Fund is a long-term savings mechanism to benefit future generations.

Notably, the finance ministry cannot cap contributions to the GSF, protecting its purpose from political interference.

Together, these funds ensure oil wealth serves both the present and the future.

One of Ghana’s most innovative governance models is the Public Interest and Accountability Committee (PIAC), a legally mandated, citizen-led body that independently monitors how oil revenue is managed and spent.

Its membership is drawn from 13 nominating institutions, including civil society, traditional authorities, professional bodies and religious organisations.

The government has no say in its appointments.

PIAC produces two detailed annual reports, tracks petroleum-funded projects, and creates public platforms countrywide for debate.
It also has direct access to the cabinet, positioning it as a powerful check in Ghana’s accountability ecosystem.

CHECKS AND BALANCES

All petroleum revenue in Ghana flows into the Petroleum Holding Fund, from which disbursements are made to:

• The National Oil Company: capped at 55% of net cash flow after financing costs.
• The Annual Budget Funding Amount: Capped at 70% of benchmark revenue, supporting sectors like infrastructure, education, and health.
• The Ghana Petroleum Funds: The remaining 30% is split between the stabilisation and heritage funds. 
  Exceptional transfers are allowed only in clearly defined situations, such as tax refunds or environmental emergencies like gas leaks or oil spills.
• Transparency is also reinforced through quarterly and annual reports published by the Bank of Ghana, which audits the funds and discloses investment performance to the public.

A CHANCE TO GET IT RIGHT

Namibia’s establishment of the Welwitschia Sovereign Wealth Fund is a step in the right direction.

However, experts argue that a comprehensive Petroleum Revenue Management Act, similar to Ghana’s, is needed.

It would not only legislate spending and saving rules but also institutionalise citizen participation and transparency.
Namibia would further benefit from:

• Establishing a PIAC-like oversight body, independent of government and drawn from diverse sectors.
• Strengthening cooperation between oversight institutions.
• Ensuring local governments are involved in selecting and implementing oil-funded projects aligned with their socio-economic development plans.
• Mandating regular, public reporting of petroleum revenue, investments and project performance.
  Ghana’s experience demonstrates that resource wealth alone does not guarantee development.
  What matters is sound fiscal frameworks, independent oversight, strong institutions and citizen engagement.
  Policy expert Jenik Radon once wrote, “Namibia can become the Singapore of Southern Africa”.
  But this will require discipline, vision, and an unwavering commitment to transparency and accountability.
  From deep waters to national progress, the future depends on good governance.

– Monika Sakaria is a next generation resource leader and University of Aberdeen alumni.

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