Examination of Ghana's oil sector: need for a new paradigm of oil revenue management for sustainable socio-economic development

Abstract

The objective of this research paper is to address the issue of oil revenue management
in Ghana for sustainable socio-economic development, as a model for emerging oil
producing nations in West Africa. To meet its objectives, the research was designed
to answer some questions pertaining to oil revenue management. Data used for this
research were collected from both primary and secondary sources. The tools used for
the research were both a survey questionnaire and interviews with selected players in
the Ghanaian oil sector. The research design employed was descriptive and the sampling
technique used to collect primary data was Stratified Random Sampling, with a sample
size of two hundred from the Western, Volta, Ashanti, Northern, Central and Greater
Accra Regions. This research was necessitated by the fact that discovery of oil in many
Africancountries has not produced the badly needed socio-economic development to
deliver its citizenry from extreme poverty and improve the quality of lives. Oil discovery
in Africa has therefore become a resource curse rather than a blessing. In this regard,
the Jubilee Oil Field discovery in 2007 has presented Ghana with a new challenge-the
management of oil revenue for sustainable socio-economic development. In light of that,
to avoid succumbing to the "oil curse" and the failed experience of other African oil
producing countries, Ghana passed into law in July 2010 its oil revenue management
model. However, this research shows that Ghana's oil revenue management law needs
to be reviewed and amended to incorporate other important provisions based on our
research and as a matter of practice in other oil producing counties.

Key Words: oil, revenue, management, model, act, petroleum, Ghana