Ghana Removes Fuel Subsidy

02 Jan 2012

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NPA, Ghana, Alex Mould

The Ghanaian government last week announced the removed fuel subsidies, following an increase in crude oil prices and the depreciation of the Ghanaian currency – the cedi.

Reuters had quoted Ghana’s Head of National Petroleum Authority (NPA) to have said this in a statement. Ghana, which joined the club of oil producers in West Africa last year, had come under increased pressure from the International Monetary Fund (IMF) to remove the fuel subsidies.

The past months had seen governments in Nigeria, Guinea, Cameroon and Chad moving to cut state subsidies on fuel.

Chief Executive Officer, NPA, Ghana, Alex Mould  had said the cumulative effect of the rise in crude oil prices this year and the about 5.7 per cent depreciation of the cedi meant a 25 per cent increase in cedi terms in the cost of procuring crude oil and petroleum products since January.

Mould had explained said Ghana had spent about 450 million cedis ($276 million) on fuel subsidies in 2011.

Ghana's Minister for Finance Kwabena Duffour, had said the removal of subsidies would have a positive impact on Ghana's economy.

UBA’s HoldCo Structure
Shareholders of United Bank for Africa (UBA) Plc, last week approved its plan to restructure into a financial services holding company (holdco).

THISDAY had reported that the approval, which was given by the shareholders at a court- ordered meeting  in Lagos, would enable UBA comply with the new licensing regime of the CBN.

UBA Plc will operate a new structure, where a non-operating company to be listed and known as UBA Holdings Plc, will become the parent company of three intermediate holding companies namely; United Bank for Africa Plc, UBA Africa Holdings Limited and UBA Capital Holdings Limited.

The Group Managing Director/Chief Executive Officer of UBA, Mr. Phillips Oduoza, had said UBA Plc would remain a listed entity on the Nigerian Stock Exchange.

He had explained: “Existing shareholders will cede 60 per cent of their holding in UBA Plc for 100 per cent ownership of UBA Holdings Plc. In addition, UBA Plc will divest its ownership of African banking and non-commercial banking subsidiaries to UBA Africa Holdings Plc and UBA Capital Holdings Plc.  These two entities will in turn be wholly-owned by UBA Holdings Plc.”

Tags: Africa, Business, Fuel Subsidy, NPA

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