Towards a more accountable resource governance in developing countries: The case of Ghana’s oil and gas sector

• Published in: The extractive industries and society Vol. 7; no. 3; pp. 812 - 819
• Main Authors: Akonnor, Augustina, Ohemeng, Frank L. Kwaku
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 01.07.2020
• Subjects: Resource Governance; Resource Governance
• ISSN: 2214-790X
• DOI: 10.1016/j.exis.2019.08.009

•Most countries with natural resources fail to utilise revenue for development.•Revenue management requires effective institutional framework to ensure transparency and accountability.•The oil sector consists of a complex web of actors and conditions that shape the status quo.•The PRMA and GHEITI emphasize macro rather than micro level accountability while shielding private capital from substantive accountability.•GHEITI and the PRMA should operate conjointly, at the micro level to ensure effective transparency and accountability at the local level. The paper examines the need for effective transparency and accountability in the governance of Ghana’s oil sector. Specifically, it looks at the inadequacies of the current institutional arrangements, in particular, the Petroleum Revenue Management Act (PRMA) and the Ghana Extractive Industrial Transparency Initiative (GHEITI) for promoting transparency and accountability at the local level. It is argued that the current institutional arrangements do not ensure effective transparency and accountability in the use of revenue for local development. Thus, while the PRMA, as well as the extension of the GHEITI to the oil sector are laudable, they are not sufficient to ensure effective accountability in the use of oil revenue for development at the local level in view of how both operate. The paper makes the case that the PRMA and GHEITI should operate conjointly, especially at the local level, to ensure accountability and development rather than as stand-alone mechanisms at present.