As Nigeria drags on, Ghana approves local content driven downstream oil policy
At a time both local and international stakeholders’ are calling on the Federal Government of Nigeria to give petroleum sector reforms being powered by Petroleum Industry Bill (PIB) the needed speedy attention, Ghanaian government has approved a new Downstream Petroleum Policy framework to ensure a Ghanaian-driven and Ghanaian-owned industry capable of attracting increased local and value-added investments and enhance job opportunities.
Details of the document showed among other things that it is structured to deepen indigenous knowledge expertise and technology for the overall benefit of all Ghanaians.
Minister of Information, Mr Kojo Oppong-Nkrumah, who broke the news while addressing media executives in Accra, said “The Policy covered areas such as trading, shipping and bulk distribution of petroleum products”.
“Additionally, it would result in infrastructure development in the downstream sector such as port discharge facilities, processing and petrochemical plants, supply of petroleum to strategic sectors of the economy and general procurement of goods and services.
“Though there has been significant progress in the role and participation of Ghanaians in the downstream petroleum activities, government believed the policy would aid in reinforcing Ghanaian participation in the sector.
The Minister averred that the target of the new policy is to put Ghanaian petroleum industry on the part of sustainable growth through retention of profits and hard currency to support the local economy, develop skills and expertise of Ghanaians and increase jobs locally.
Oppong-Nkrumah added that “The policy has a grace period for building local capacity and bringing on board best practices from other jurisdictions where similar policies are being practised.
He further added that “Peter John Amewu, the Energy Minister, would provide further details about the policy’s nuances per each activity in the coming days.
“Consequently, a Petroleum Downstream Ghanaian Content Committee would be established under the National Petroleum Authority to supervise, coordinate, administer and manage the development of local content in the downstream industry.
The Ghanaian Minister of Information noted that “It is the belief of government that effort such as this would assist in strengthening the Ghanaian economy as well as ensure that the capital of the individual is bolstered”.
