By; Christian Kpesese
Renowned political scientist and governance expert, Prof. Ransford Edward Van Gyampo, in 2014 urged Ghana to urgently apply the hard lessons from its troubled gold mining sector to the management of oil revenues, warning that failure to do so could condemn the country to another cycle of squandered natural resource wealth.
Almost 12 years on since the Professor’s call, NR NEWS believes the issues raised are still relevant as Ghana’s oil fields dwindles with less investment in the upstream sector.
Has any lessons been learnt at all?
According to the research paper titled “MAKING GHANA’S OIL MONEY COUNT: LESSONS FROM GOLD MINING” published in 2014, Prof Gyampo stated that, Ghana’s long experience with gold mining offers a sobering lesson in how weak institutions, opaque revenue management, and poor accountability can undermine the developmental potential of natural resources.
He cautioned that unless decisive reforms are implemented, the country’s oil wealth risks suffering the same fate as gold, which he says “has not counted meaningfully towards national development despite decades of extraction.
Prof. Gyampo emphasized the need for Ghana to move beyond rhetoric and adopt concrete policy, legal and institutional reforms to ensure oil revenues translate into tangible improvements in the lives of ordinary citizens.
He urged the urgent need for adoption of mandatory transparency and accountability mechanisms since the experience with gold mining shows that voluntary compliance by companies and institutions are insufficient to protect the national interest.
Strengthening transparency laws
Prof. Gyampo recommended that Ghana strengthen and legislate transparency initiatives such as the Extractive Industries Transparency Initiative (EITI), making full disclosure of payments, receipts and contracts legally binding across the entire oil value chain. He noted that countries such as Nigeria and Liberia have achieved stronger oversight by backing transparency frameworks with legislation.
He further advocated for expanding oversight beyond royalties to cover full lifecycle of exploration decisions, licensing, environmental impact assessments, production volumes, pricing, capital gains, and revenue allocation.
Transparency he noted must not cover just what companies pay and what government receives, urging that anything short of that leaves room for abuse, revenue leakages and corruption.
Fair fiscal regime and revenue collection
Another key recommendation highlighted by Prof. Gyampo is the need for a robust and fair fiscal regime that guarantees Ghana its rightful share of oil revenues. He pointed to the gold sector, where low royalties, generous tax incentives and weak enforcement have drastically reduced state earnings.
According to him, in the oil sector, there must be zero tolerance for tax evasion, including capital gains tax and other levies, adding that state institutions such as the Ghana Revenue Authority must be properly resourced and coordinated to prevent revenue losses.
Community benefits and local development
Prof. Gyampo also warned against repeating the mistakes of gold mining communities, many of which remain impoverished despite years of resource extraction. He recommended clear, transparent and timely transfer of oil-related benefits to affected regions, backed by clear formulas and documentation.
Prof Gyampo who is currently Chief Executive Officer of the Ghana Shippers Authority emphasised that community funds should prioritise capital investments such as roads, water, health facilities, education and livelihood programmes, rather than being consumed by recurrent expenditure.
Resource-rich communities he urged must not be left poorer after extraction ends, whiles oil money meant for local development must be invested, not spent away.
Public participation and accountability
The governance expert further called for stronger citizen participation in decision-making and district development planning, in line with national planning laws. He argued that involving communities in how oil revenues are spent would reduce waste, build trust and improve development outcomes.
Prof. Gyampo also emphasized the importance of managing public expectations through regular, accurate and accessible information on oil revenues and expenditures.
He noted that when people are kept in the dark, mistrust grows, whereas transparency builds confidence and helps citizens form realistic expectations.
Avoiding the ‘paradox of plenty’
In conclusion, Prof. Gyampo warned that Ghana stands at a crossroads. While oil offers an opportunity to accelerate development, it could also deepen inequality and frustration if mismanaged.
“The gold sector shows us what not to do,” he said. “If Ghana fails to reform its governance structures, the country risks perpetuating the paradox of plenty, where resource wealth exists but development remains elusive.”
He maintained that painful as the lessons from gold mining may be, they provide a clear roadmap for ensuring Ghana’s oil wealth finally counts, not just in national accounts, but in the everyday lives of citizens.
12 Years After Prof Gyampo’s Warning: Has Ghana Learnt from Gold Mining in Managing Oil Revenues?
Read the full paper published in 2014 below:
