The Minister for Roads and Highways, Kwame Governs Agbodza, has revealed that the government currently owes road contractors approximately GHS 40 billion in arrears.
Speaking on the Citi Breakfast Show on Tuesday, October 14, Mr. Agbodza outlined the financial challenges the government faces in addressing debts accumulated under the previous Akufo-Addo administration.
He, however, commended President John Dramani Mahama and Finance Minister Dr. Cassiel Ato Forson for taking significant steps to reduce the arrears, noting that GHS 5 billion has already been paid to contractors within just a few months in office.
“Without a doubt, we’re close to about GHS 40 billion in work done but unpaid across the road sector. The GHS 5 billion payment is the single largest disbursement made to contractors at one time in recent history,” Mr. Agbodza stated.
He emphasized that the payments were made without borrowing from international sources, describing the move as evidence of prudent fiscal management and strong leadership.
“I think President Mahama and the Finance Minister deserve commendation for this level of commitment. It’s only through prudence and effective leadership that we have been able to achieve this,” he added.
Mr. Agbodza reaffirmed the government’s determination to gradually clear the remaining arrears, assuring contractors that efforts are underway to secure additional funding sources to sustain payments.
The Minister’s comments follow concerns raised by the Ghana Chamber of Construction Industry (GhCCI) over persistent delays in releasing funds for outstanding Interim Payment Certificates (IPCs).
In a letter dated September 29, 2025, and addressed to the Roads and Highways Minister, the Chamber criticized what it described as the government’s failure to meet President Mahama’s earlier assurance that all arrears would be cleared by July 2025.
The GhCCI warned that the delays were causing severe financial distress among contractors, consultants, and suppliers, threatening thousands of jobs and stalling critical infrastructure projects nationwide.
