UGBS Professor of Public Administration, Abdul-Gafaru Abdulai, Has Urged a Rethink on How Oil Revenues are Allocated
On 10th June 2025, Prof. Abdul-Gafaru Abdulai of the Department of Public Administration at the University of Ghana Business School, delivered a research presentation assessing the regional distribution and developmental impact of Ghana’s oil-funded investment, over a decade since the country began commercial oil production at the Cedi Conference Centre, University of Ghana.
Giving the welcome address, Prof. Justice Bawole, Dean of UGBS, emphasised that Africa can no longer just be a data source for global research but lead the conversation and create impactful change through our research. Prof. Bawole urged African scholars to take the lead in generating and sharing research that directly addresses the continent’s needs.
Speaking at the event, Mr. Emmanuel Kuyole, Programme Officer, Ford Foundation, shared that Ford Foundation supported this study as it is central to their mission of advancing African knowledge systems. He explained that exploring how Ghana’s modernization efforts and fair distribution of resources have fallen short in reaching all communities is a critical issue that demands action. He emphasised that the research is not only timely but essential for policy improvement. “Many decisions are made without reliable data. That’s why research like this matters. It helps ensure that policies are built on evidence and not assumptions.” He noted that while the topic may seem familiar, it remains highly relevant because of its connection to policy-making. He noted that this research has the potential to strengthen advocacy efforts and influence ongoing policy conversations.
Drawing on more than a decade of data, Prof. Gafaru argued that over $10 billion in oil revenue has been accrued, yet it has not led to balanced regional development. Prof. Gafaru emphasised that while the Petroleum Revenue Management Act (PRMA) and the Ghana Shared Growth and Development Agenda (GSGDA) outlined ambitious goals for regional equity and balanced development, the impact on historically marginalised areas, particularly the northern part of Ghana, remains limited. Also, PRMA, which explicitly encourages investments that protect vulnerable populations, sectors like social protection, disability inclusion, and renewable energy development have not been prioritised in national spending plans since 2011.
Referencing recent findings from the Public Interest and Accountability Committee (PIAC), Prof. Gafaru noted that multidimensional poverty continues to be disproportionately high in the northern parts of the country, despite promises that oil wealth would address historical disparities. He also pointed to specific plans under GSGDA, such as the proposal to develop a cotton and shea nut industry in the north as part of a targeted poverty reduction strategy. However, implementation has been minimal, and the developmental gap between the Northern and Southern parts of Ghana persists.
He highlighted that Ghanaians are largely unconvinced that oil has delivered on its promise of equitable development, underscoring a worrying lack of transparency in how oil revenues are being used. Prof. Gafaru revealed that sectors like health and road infrastructure have suffered from severe regional bias, favoring the Greater Accra Region. Prof. Gafaru revealed that many oil-funded projects, particularly in roads and infrastructure, were selected for political visibility rather than real need. His presentation revealed that the Greater Accra Region, which constitutes just 1.2% of Ghana’s landmass, has received over 33% of all oil-funded road sector investments, showing a capital-centric bias.”
The health sector was highlighted as another area with severe regional bias, with the Greater Accra Region receiving nearly half of all health investments from oil revenue between 2015 and 2020. “The assumption that COVID justified the spending pattern doesn’t hold; it is an issue of misalignment and structural bias towards capital regions,” Prof. Gafaru clarified.” Meanwhile, regions like Volta received just 1.9% of health spending, despite comprising over 8% of Ghana’s population. And regions such as the Upper West and Northern Region received almost nothing in some years, despite having significant healthcare and infrastructure deficits.
In education, Prof. Gafaru pointed to data showing that the Upper West and Northern Regions receive the highest per capita investment, up to seven times more per child than Greater Accra. This relative equity was partly attributed to flagship programs like the Free Senior High School policy and the construction of school infrastructure in underserved communities.
The Upper East Region received the highest cumulative share of oil-funded support in agriculture. However, Prof. Gafaru mentioned that this equity did not always translate into impact. A significant portion of agricultural spending went into the One Village, One Dam initiative, which was poorly executed and failed to meet basic irrigation needs. And became a hazard, reportedly leading to the deaths of children who fell into it.
A core concern raised by Prof. Gafaru was the lack of transparency and disaggregated data in reporting on ABFA-funded projects. He emphasised that much of the available information is so generalised that researchers and the public alike cannot trace where or how the funds were spent. “This undermines not just transparency but accountability,” he explained.
He recommended that the Ministry of Finance publish more detailed, regionally disaggregated reports on petroleum spending, particularly in the key sectors of health, education, agriculture, and infrastructure. Prof. Gafaru proposed targeted amendments to the PRMA to limit political discretion and better safeguard equity in resource distribution. He emphasised the need for a national allocation formula, one that ensures every region benefits fairly, and no region is left behind. Additionally, he advocated for earmarked oil funds to support social protection programmes, especially for vulnerable populations such as persons with disabilities, who have long been excluded from Annual Budget Funding Amount (ABFA) priorities.
Prof. Gafaru’s presentation made a call for redesigning how oil revenue under the ABFA is allocated and reported. One that places equity, transparency, and inclusion in spending decisions. He urged the government to revisit the mechanisms guiding ABFA and to ensure that priority sectors such as health and education are not only well-funded but fairly distributed across all regions. Prof. Gafaru addressed that oil revenue can only serve as a true national resource if its distribution is transparent, data-driven, and rooted in equity.
The study was a joint research project from researchers from the University of Ghana, the University of Professional Studies, and the University of Development Studies.
