The New Patriotic Party (NPP) has dismissed recent claims by policy think tank IMANI Africa that Ghana’s Gold-for-Oil (G4O) initiative weakened the financial standing of the Bulk Oil Storage and Transportation Company Limited (BOST) and failed to deliver on its intended objectives.
In a statement of rebuttal issued on Monday, September 29, the party argued that the facts from audited reports of BOST, the Bank of Ghana (BoG), and the National Petroleum Authority (NPA) show that “the programme not only enhanced BOST’s financial performance but also contributed to foreign exchange stability and fuel price moderation.”
Stronger Financial Performance for BOST
According to the NPP, BOST’s profitability improved significantly during the implementation of the Gold-for-Oil programme.
- Profit after tax in 2024 stood at GH¢398 million, almost double the GH¢208 million recorded in 2023.
- Net profit margin rose sharply from 17.7% in 2023 to 30% in 2024.
- Return on Assets (ROA) improved from 9.2% in 2023 to 15% in 2024.
“These audited results demonstrate operational efficiency and prudent management, directly contradicting IMANI’s suggestion of inefficiency,” the statement noted.
Contribution to Forex Stability
On foreign exchange, the NPP emphasised that BoG’s 2024 Annual Report confirmed the policy objective of the G4O programme—to reduce reliance on the US dollar for oil imports.
By transacting oil purchases in gold, the programme helped ease pressure on the cedi, moderate inflationary pressures, and shield consumers from steep fuel price hikes.
“This was a time-bound intervention that achieved its purpose during a critical phase of Ghana’s economic recovery,” the NPP stressed.
BoG’s Reported Losses Clarified
Addressing claims of mismanagement in BoG’s reported losses, the NPP explained that the central bank transparently disclosed GH¢1.82 billion in forex liquidity support costs in 2024, up from GH¢317 million in 2023.
“These figures represent the costs of stabilising forex supply to facilitate Gold-for-Oil imports, not evidence of diversion,” the party clarified. BoG’s seed capital of GH¢4.69 billion was also fully traceable on its balance sheet and confirmed via RTI disclosures.
Governance and Transparency Safeguards
On transparency, the NPP highlighted the governance structures in place to monitor the programme:
- BoG appointed CBG as the collection bank and DMT as the collateral manager, ensuring oversight of all transactions.
- BOST conducted quarterly internal audits and maintained verifiable records of consignments, sales, and depot stock.
- The Ghana Audit Service independently audited the programme, while the NPA oversaw the quality, quantity, and pricing of products sold.
- Inventory reports confirmed 27.1 million litres of petroleum products in stock at year-end 2024, disproving allegations of missing fuel.
“These safeguards ensured that no product left BOST depots without proper approval and accountability,” the NPP concluded, adding that IMANI’s claims were unfounded and risked misleading the public.