By Adnan Adams Mohammed
State support for the Electricity Company of Ghana (ECG) has reached nearly GH₵38 billion over a two-year period, shifting a massive financial burden onto Ghanaian taxpayers to keep the state power distributor afloat amid persistent operational deficits.
Newly published 2025 audited financial statements show that while ECG reported a reduced post-tax loss of GH₵2.52 billion down from GH₵8.26 billion in 2024 the apparent recovery was heavily sustained by direct government intervention and favorable foreign exchange movements rather than operational improvements.
In 2024, the government provided ECG with a grant of GH₵17.03 billion, booked directly as income. In 2025, the state stepped in again, paying GH₵20.86 billion directly to independent power producers (IPPs) and fuel suppliers on ECG’s behalf. Unlike the previous year’s grant, the 2025 payment has been recorded as a loan that ECG is required to repay to the central government.
Commenting on the fiscal toll of these interventions, financial analyst Alfred Appiah highlighted the opportunity cost of continuously funding the utility’s shortfalls.
“It’s nearly 38 billion cedis of state support across two years money from the Consolidated Fundrrts that could have gone to classrooms, roads, clinics, and sanitation systems,” Appiah stated. “Every cedi that covers ECG’s shortfall is a cedi not spent somewhere else.”
The underlying financial health of the power distributor remains fragile. ECG recorded an operating loss of GH₵14.35 billion in 2025, with gross losses standing at GH₵12.66 billion as cost of sales (GH₵34.77 billion) significantly outpaced revenue (GH₵22.11 billion). The reported loss was only contained due to a GH₵12.16 billion foreign exchange gain resulting from cedi performance, given that ECG purchases power denominated in U.S. dollars but collects revenue in local currency.
Efficiency metrics show little sign of structural recovery. Distribution losses rose slightly from 26.88% in 2024 to 27.05% in 2025, reflecting unaddressed technical and commercial leaks in the distribution grid.
“This is why efficiency at ECG is not a technical concern; it is a fiscal one,” Appiah emphasized. “Strip out forex movements and government support and nothing has changed. ECG loses roughly 15 billion cedis a year from its core operations. Until the losses come down and collections improve, the bailouts continue, and taxpayers shoulder the burden.”
With total comprehensive losses reaching GH₵4.90 billion for 2025 and total equity standing at GH₵438 million, pressure is mounting on state authorities to enforce structural reforms at ECG to prevent further drain on public funds.
