Defence Ministry Faces GHS 275m Debt to Food Suppliers Amidst GHS 3.7bn Total Indebtedness

dedThe Ministry of Defence is grappling with a mounting debt crisis, as food suppliers threaten to halt services over unpaid arrears totaling GHS275 million. The debt, accumulated over 17 months from August 2023 to December 2024, has raised concerns about the sustenance of Ghana’s armed forces.

Defence Minister Dr. Edward Omane Boamah disclosed the financial strain during a parliamentary debate on the 2025 Budget in Accra on Friday, March 21, 2025. He revealed that the Ministry’s total indebtedness stands at GHS3.7 billion, covering expenses related to the supply and repair of equipment, as well as the provision of military machinery.

“It must be placed on record that the outstanding indebtedness in terms of claims is almost GHS3,700,000,000,” Dr. Boamah stated. “This includes indebtedness to food suppliers, supply and repair of equipment, and provision of machinery and equipment.”

In response, the Finance Ministry has committed to addressing the arrears. Dr. Boamah assured Parliament that “with prudence and the unfolding visible competent management of the fiscal space, the Minister for Finance has promised to be current on current claims as he takes steps to creatively settle the huge arrears.”

The financial strain on the Defence Ministry reflects broader fiscal challenges facing the government, raising concerns about the sustainability of critical national security expenditures. Stakeholders will be keenly watching the Finance Ministry’s next steps to prevent disruptions to military operations.