Free SHS, Agenda 111, Others Risk Funding Setback Amid Declining Oil Production

Some government flagship initiatives such as the Free Senior High School Policy (Free SHS) and Agenda 111 are at risk of facing a major funding setback as the country’s oil production has been experiencing declining production.

This is because the funding of these flagship initiatives is largely dependent on the oil proceeds.

Expert in the Oil and Gas industry, Mark O. A. Agyemang, Technical Manager at the Public Interest and Accountability Committee (PIAC) further reveals that not only the Free SHS and Agenda 111 that are at risk, but the District Assembly Common Fund (DACF) and other developmental and infrastructure projects also face the similar risk of funding challenges.

Mark O. A. Agyemang, who was speaking on Time With PIAC platform monitored by The High Street Journal noted that since 2020, Ghana’s oil production has been experiencing a major hit with an average decline of 9.2 % per year.

He further revealed that this declining oil production is not mainly as a result of depleting oil reserves but technical and other surmountable challenges.

The decline has put the country’s oil proceeds at risk of decline which can result in a lack of funding for all these policies and projects that depend on petroleum revenues.

“We have budgetary lines in our national budget that substantially rely on petroleum revenue. Like the Free Senior High School, the Agenda 111 Projects, the District Assembly Common Fund, and other developmental projects and infrastructure,” he noted.

The Technical Manager further added, “So it should be a cause of worry for Ghanaians that we are declining production and not adding on to reserves.”

Mark Agyemang is therefore recommending a collaborative stakeholder approach to address these challenges which, if nothing is done, has a far-reaching impact on the country’s economy which is already struggling.

Source:thehighstreetjournal.com