Comprehensive Review of Petroleum Revenue Assessment, Collection, and Management in Ghana

In this study, an empirical examination of Ghana's processes for assessing, collecting, and managing petroleum income is conducted. The study further examines Ghana's legislative framework for managing its oil income. To provide a working document for the assessment, collection, distribution, and use of Ghana's oil income under Article 36 of the 1992 Constitution, the Petroleum Revenue Management Act, 2011 (Act 815) as modified by Act 893 of 2015 was created. The Bank of Ghana, the Ministry of Finance, and the Public Interest and Accountability Committee Reports provided secondary data for the study's analysis. The findings from the empirical review revealed that between 2011 to 2022, Ghana earned US$8.79 billion in total oil revenue. The review also showed that the major sources of oil revenue to Ghana are the Carried and Participating Interest (53%), Royalties (26%), and Corporate Income Tax (21%). In general, the provisions of the Petroleum Revenue Management Act are somewhat adhered to though there were some ministerial discretions regarding the cap assessment of the excess revenue. The result confirms that the passage of the Petroleum Revenue Management Act was indeed timely, as some funds best suited for the Petroleum Holding Fund were wrongly deposited in Ghana's non-taxable revenue account. The paper, therefore, calls for strict adherence to the provisions of the Petroleum Revenue Management Act to help maximize the benefits of the petroleum industry and its sustainability in Ghana.