According to Zigred Acquah, whenever government introduces a new tax or levy, people always ask questions. This is normal. Taxes affect everybody, so citizens want to know why they are paying more.
Many Ghanaians had already become tired of new taxes and levies. According to him, under the previous NPP government, people paid the E-Levy, Betting Tax, Emissions Levy and others. These taxes were introduced with promises that they will solve economic problems. But for many citizens, the results were not clear in their daily lives. Because of this, trust in government went down since people felt their sacrifices were not bringing real benefits.
Zigfred Aquah Noted Some Initial Concerns About the One Cedi Fuel Levy
He noted that, when President John Dramani Mahama introduced the One Cedi Fuel Levy, many people were worried. Some thought it will become another tax that will be collected but later used for something else. But others also supported it because government explained clearly what the money was for. The purpose was to help clear debts in the energy sector, especially money owed to Independent Power Producers and gas suppliers. It was also to help restore stability in Ghana’s electricity system.
The expectation from citizens was simple. If government says this money is for energy sector debts, then it should be used for that purpose.
Zigfred Stressed That Government Used the Money Efficiently
He referenced PURC saying: “according to the PURC and reports from the Ministry of Finance, money from the One Cedi Fuel Levy has been used to support payments in the energy sector to reduce debt and stabilise the system.”
He asserted that, the total energy sector intervention is about US$1.47 billion. This has been used to deal with important obligations in the power sector and to improve Ghana’s credit standing in energy financing. This includes:
1. US$597.15 million used to restore the World Bank Partial Risk Guarantee which had been used up
2. US$480 million paid to gas suppliers such as ENI and Vitol for fuel supplied to power plants
3. US$393 million paid to Independent Power Producers including Cenpower, Twin City Energy, Early Power, Sunon Asogli, BXC, Meinergy and Cenit Energy
These payments matter because they are directly linked to the problem the levy was introduced to solve.
Zigfred Acquah On Why Paying IPPs Is Important
‘Some people may ask why it is important to pay Independent Power Producers.”
“The answer is simple. IPPs produce a big part of the electricity we use in Ghana. They supply power to homes, schools, hospitals, companies and industries. They are like any business, so when they produce electricity, they must be paid.”
“When payments delay, it puts pressure on them. It affects their ability to maintain equipment and continue producing power. This can create problems in electricity supply.”
“But when government pays them, confidence returns. It shows that Ghana can honour its obligations. It also makes investors more comfortable to do business in the energy sector.”
“Most importantly, it helps keep electricity supply more stable for everyone.”
Zigred’s Final Remarks
“There is something we must all learn from this. Citizens have every right to question taxes and demand accountability. That is what democracy is about. Government must always be checked by the people. At the same time, government must also make sure that whatever money it collects is used for the purpose it was meant for. This case shows that when a levy is clearly explained and properly used, it can bring results that people can see. It also helps to rebuild trust between government and citizens.”
“This should be the way forward for all governments. Whenever a tax or levy is introduced for a specific purpose, the money must be used exactly for that purpose. When this is done:
1. People will trust government more
2. Citizens will be more willing to support policies
3. The economy will become more stable
4. Governance will improve
This is what every Ghanaian expects and deserves.”
