Strengthening Environmental Governance in Ghana’s Oil and Gas Sector. A Critical Appraisal of Legal and Institutional Frameworks

Strengthening Environmental Governance in Ghana’s Oil and Gas Sector. A Critical Appraisal of Legal and Institutional Frameworks

Anuwar-Sadat Amadu

Department of Justice, Law, and Criminology, American University

DOI: https://dx.doi.org/10.47772/IJRISS.2025.90600072

Received: 04 May 2025; Accepted: 11 May 2025; Published: 30 June 2025

ABSTRACT

The oil and gas sector, often heralded as a vital contributor to the economies of many developing nations especially in Africa, paradoxically produces significant environmental pollutants and waste. This sector, while inherently prone to releasing pollutants, can significantly mitigate the extent of such pollution through strict regulatory mechanisms. In Ghana, despite the existence of regulations and legislative measures aimed at mitigating environmental challenges in the oil and gas sector, several studies have upheld the view that there is continuous disregard for the existing regulations, manifested in the pollution of water bodies and the degradation of lands indiscriminately. This study systematically reviewed existing literature as well as collecting empirical data to identify the gaps and weaknesses in the legal and institutional framework for environmental protection in Ghana’s oil and gas sector. The PRISMA Checklist served as a framework for the study. A Likert scale index and thematic analysis were conducted to aid in the presentation of results. The review reveals several prominent themes, including ineffective enforcement and compliance, limited stakeholder engagement, the absence of industry-specific environmental guidelines and resource constraints for environmental agencies or institutions to effectively carry out their mandate. The review underscores the notion that there are gaps in the legal and institutional framework for protecting the environment in the oil and gas sector. The identified gaps collectively emphasize the dire need for significant enhancements in the nation’s regulatory and institutional apparatus dedicated to environmental protection within the oil and gas sector. This multi-faceted array of weaknesses highlights not only the urgency of reform but also the interconnectedness of these issues, reinforcing the imperative for a holistic and integrated approach to addressing them.

INTRODUCTION

In the extractive industry, safe and sustainable environmental practices play a critical role as a guiding principle that is indispensable for addressing the environmental challenges inherent to its operations. This is because the operations within this industry, including mining, oil and gas, and other natural resource extraction, have historically yielded substantial amounts of unwanted waste and pollutants, leading to environmental pollution and degradation. For example, the global coal mining sector produces an estimated 15 billion tons of waste each year. The global oil and gas sector produces an estimated 10 billion tons of waste each year (International Energy Agency, 2022). This compounding volume of waste has a net negative impact on the environment, such as polluting water bodies, air, soil, and indeed the entire ecosystems, which consequentially poses a risk to human health (Tambol et al., 2023; Vora et al., 2021).

Consequently, to ensure that the extractive industry operates in an environmentally safe and socially responsible manner, stakeholders and governments around the world have instituted a comprehensive framework of regulations and laws. These measures are designed to hold industry operators accountable and compel them to conduct their activities with a heightened sense of responsibility to protect the environment and local communities. They encompass a wide range of aspects, including environmental impact assessments, waste management protocols, and stringent emissions controls, all of which aim to minimize the negative ecological consequences of extractive operations (Albeldawi, 2023; Boatey et al., 2022). Such regulatory oversight serves as a vital safeguard against environmental harm and encourages the industry to embrace sustainable practices, promoting a harmonious balance between resource utilization and environmental preservation.

The oil and gas sector, often heralded as a vital contributor to the economies of many developing nations especially in Africa, paradoxically produces significant environmental pollutants and waste. This sector, while inherently prone to releasing pollutants, can significantly mitigate the extent of such pollution through strict regulatory mechanisms (Garcia-Gonzales et al., 2019; Yin et al., 2022). In other words, institutional and legal frameworks play a pivotal role in ensuring that oil and gas operations are environmentally responsible. However, the efficacy of such regulatory measures can be significantly compromised in the presence of institutional weaknesses and legal deficiencies (Young & Stokke, 2020; Yang et al., 2019).

The perceived fragility and insufficiencies in the governance and institutional structures tasked with regulating the oil and gas sector are notable impediments in the quest to mitigate environmental pollution stemming from the industry. This challenge is accentuated by the experiences in several African economies, including Nigeria and Ghana, which, despite experiencing a substantial influx of economic revenues following their oil discoveries have poor environmental conditions in their coastal areas where oil and gas are often explored (Owusu, 2018; Mohammed et al., 2022). These instances underscore the significance of sound governance and institutional capacity to manage and oversee the oil industry effectively. While several lessons and policy recommendations have been extensively suggested, especially for the more recent economies that are now discovering oil such as Ghana, there is still some level of scepticism as to whether their governance structures are robust enough to withstand the challenges associated with the oil industry (Quartey & Abbey, 2018).

In the case of Ghana, there are several legal and regulatory frameworks within the Ghanaian constitution enacted to ensure safe environmental practices within the sector.  For instance, the National Petroleum Corporation Law 1983 (PNDC Law 64), provides a framework for the exploration, production and refining. Other, subsidiary legislation passed under  Petroleum Laws to deal with oil and gas exploration, production and refining include; the Land Act, 2020 (ACT 1036), Petroleum (Exploration and Production) Act, 2016 (ACT 919), Petroleum Commission Act, 2011 (ACT 821), Environmental Assessment Regulations, 1999 (L.I 1652), Petroleum (Exploration and Production) (Health, Safety and Environment) Regulations, 2017 (L.I 2258), Petroleum Hub Development Corporation Act 2020 (ACT 1053), National Petroleum Authority Act, 2005 (ACT 691), Minerals and Mining Act, 2006 (ACT 703), etc. All these laws aim to the regulation of oil and gas exploration, production and refining activities and the protection of the environment and other natural resources activities. Moreover, outside these statutory provisions are Customary Laws and Common Law provisions aimed at regulating petroleum exploitation and its impact on the environment at the community and local level (Owusu-Ansah & Boateng, 2021).

Despite the existence of these regulations and legislative measures aimed at mitigating environmental challenges in the oil and gas sector, significant bottlenecks persist. Several studies have upheld the view that there is continuous disregard for the existing regulations, manifested in the pollution of water bodies and the degradation of lands indiscriminately (Alemzero et al., 2021; Arthur & Amo-Fosu, 2020). A critical concern stemming from this legislative response is the fragmented nature of these regulations, dispersed across various legal sources, rendering it arduous to ascertain the appropriate legal recourse for specific challenges. Equally disconcerting is the dearth of specialized, committed, and resolute enforcement officers within land and environmental agencies, leading to an enforcement gap in environmental law implementation (Asare et al., 2021).  Against this backdrop, this study systematically reviews existing literature to identify the gaps and weaknesses in the legal and institutional framework for environmental protection in Ghana’s oil and gas sector.

The review reveals several prominent themes, including ineffective enforcement and compliance, limited stakeholder engagement, the absence of industry-specific environmental guidelines and resource constraints for environmental agencies or institutions to effectively carry out their mandate. The review underscores the notion that there are gaps in the legal and institutional framework for protecting the environment in the oil and gas sector. The study made important contributions to the energy governance literature. It has provided highlights of the key gaps and weaknesses in the legal and institutional framework under appropriate subheadings. It has also proffer solutions to address the gaps/weaknesses identified. It must be noted that this review has limitations. For instance, it includes English-language articles only, and the literature search was limited to peer-reviewed articles in just four databases. As such, potentially relevant studies located in books, non-peer-reviewed articles, reports or grey literature were not considered.

Theoretical and Empirical Review

Theoretical Framework

This review is underpinned by the institutional theory. The institutional theory posits that institutions, comprising formal rules, regulations, and informal norms, shape the behaviour and decisions of individuals and organizations within a given societal context (Voronov & Weber, 2020). This theory emphasizes the importance of understanding how these institutions influence the structure and functioning of various sectors, including the legal and institutional framework governing Ghana’s oil and gas sector. In the context of this research, institutional theory is particularly relevant as it provides a conceptual lens to explore the reasons behind the gaps and weaknesses observed in the sector’s legal and institutional framework. It suggests that these gaps are not solely the result of arbitrary decisions but are, in part, shaped by the prevailing institutional environment, including regulatory structures, historical norms, and societal expectations. By applying institutional theory, the research can delve into the deeper structural and cultural factors that contribute to the observed weaknesses, offering a more comprehensive understanding of the challenges and potential solutions within the Ghanaian oil and gas sector.

Moreover, institutional theory emphasizes that recognizing and addressing gaps and weaknesses in the legal and institutional framework of Ghana’s oil and gas sector requires a nuanced approach. It acknowledges that policy and institutional changes are not isolated endeavours but are deeply intertwined with existing institutions and practices. Therefore, to formulate effective recommendations and reforms, it is crucial to assess the existing institutional landscape and identify how it influences the sector’s performance. By using institutional theory as a theoretical framework, the research can uncover the embedded institutional logic, power structures, and collective beliefs that have shaped the sector’s evolution. This understanding can inform policymakers, industry stakeholders, and researchers on the strategies and interventions needed to strengthen the sector’s legal and institutional foundations, ultimately contributing to more sustainable and responsible oil and gas governance in Ghana.

Overview of Ghana’s Oil and Gas Sector

Ghana’s oil and gas industry, although relatively new with commercial production commencing in 2010, has undergone rapid growth and now plays a pivotal role in the country’s economy (Abudu & Sai, 2020). The sector is overseen and regulated by the Petroleum Commission, which holds the responsibility of promoting and ensuring the efficient management of the industry. Ghana boasts several key oil and gas fields, with the Jubilee field, the Tweneboa-Enyenra-Ntomme (TEN) field, and the Sankofa-Gye Nyame (SGN) field being the primary players. These fields are operated by prominent international oil companies such as Tullow Oil, ENI, and Kosmos Energy, signifying substantial foreign involvement in Ghana’s oil and gas exploration and production activities.

Beyond its economic significance, the industry also contributes to job creation and investment opportunities within the country. In 2022, it was estimated that the sector employed around 8,000 people in various capacities, further bolstering its role in Ghana’s labour market (Ghana Statistical Service, 2023). This also attracts substantial foreign investment, reinforcing Ghana’s position as an attractive destination for oil companies looking to explore and develop its petroleum resources.

The Ghanaian government demonstrates a clear commitment to the industry’s development through various policies and initiatives. These include the Petroleum Commission Act (2011), which established the regulatory framework, and the Ghana Gas Master Plan (2012) aimed at optimizing the utilization of natural gas resources. While the oil and gas sector offers great potential for contributing to Ghana’s economic development, the government recognizes the importance of managing it sustainably and ensuring that the benefits are equitably distributed among its citizens. This underscores the need for responsible and environmentally conscious practices, coupled with measures to ensure that the industry positively impacts local communities and the nation’s economy as a whole (Jones, 2021).Top of Form

Key Laws, Regulations, and Policies for Environmental Protection in the Oil and Gas Sector

Ghana has implemented a robust set of environmental regulations and policies within the petroleum sector to safeguard the environment. These regulations are designed to mitigate the potential environmental risks associated with oil and gas exploration, development, and production activities. The Environmental Protection Agency Act of 1994, along with the Environmental Assessment Regulations of 1999, serve as the cornerstone of Ghana’s environmental protection framework. These laws empower the Environmental Protection Agency (EPA) to formulate environmental policies, set standards, and issue permits for activities that may impact the environment, including oil and gas operations. Before granting permits, the EPA may require Environmental Impact Assessments (EIAs) to evaluate the potential environmental consequences of proposed projects. This process ensures that operators take necessary measures to prevent or mitigate adverse environmental effects.

In addition to these foundational regulations, Ghana has issued specific guidelines tailored to the offshore oil and gas sector. The EPA Guidelines for Environmental Assessment and Management in Offshore Oil and Gas Development (2010) provide industry-specific guidance on managing environmental risks during offshore activities. These guidelines address issues such as oil waste management, dispersant use, and the protection of marine ecosystems. They emphasize the importance of adherence to international best practices to minimize environmental impacts. The Petroleum (Exploration and Production) Act, of 2016, also reinforces environmental protection efforts by requiring licensees and contractors to submit decommissioning plans for approval and establish decommissioning funds. This ensures that at the end of petroleum operations, facilities are safely decommissioned, and environmental restoration is conducted responsibly.

Institutional frameworks in Ghana’s oil and gas sector

Ghana has established a comprehensive institutional framework to regulate and oversee the oil and gas industry while ensuring environmental protection. These institutions collaborate to manage the sector effectively and mitigate potential environmental impacts.

The Environmental Protection Agency (EPA) plays a pivotal role in enforcing environmental regulations within the petroleum sector. The EPA formulates policies, sets standards, and grants environmental permits for activities that could affect the environment, including oil and gas operations. It requires Environmental Impact Assessments (EIAs) to evaluate the environmental consequences of proposed projects and ensure that operators comply with best practices to protect the environment. The Petroleum Commission is the upstream petroleum regulator responsible for promoting sustainable and cost-efficient petroleum activities, monitoring compliance with regulations, and promoting local content and participation in the industry. It works in collaboration with the Ministry of Energy to oversee oil and gas activities and ensure that environmental standards are upheld.

Additionally, the Land Commission, Ministry of Lands and Natural Resources, and Ministry of Environment, Science, Technology, and Innovation collaborate to safeguard land and environmental resources against degradation resulting from oil and gas activities. These institutions work together to ensure responsible land use, environmental preservation, and the sustainable development of the petroleum sector. Other key stakeholders include the Ghana National Gas Company Limited (Ghana Gas), Ghana National Petroleum Corporation (GNPC), National Petroleum Authority (NPA), and various oil and gas companies such as ENI Ghana Limited and Quantum Terminals Limited. These institutions collectively contribute to the regulatory framework, ensuring that the oil and gas industry operates in a manner that minimizes its impact on the environment and protects Ghana’s natural resources. Below is the organogram of the Ghana oil and gas sector. This covers the regulating agencies or institutions, the upstream, midstream and downstream. See figure 1 below;

Figure 1: Organizational Structure of Ghana Regulatory Framework for the Petroleum Sector

Source: Author’s Construct, (2025)

Empirical Reviews

Environmental impact of the activities in the oil and gas industry

Alemzero et al. (2021) sought to critically study the perceived impacts of the exploration of hydrocarbons in selected coastal communities in the Western region of Ghana, the oil and gas industry benefits to local communities, and to determine whether hydrocarbon development is a means for sustainable development. The study uses both quantitative and qualitative approaches using a questionnaire survey, key informant interview, and focus group discussion tools to understand the impact of oil and gas exploration and production in selected communities along the coast of Ghana. The findings show that the activities of oil production and exploration impact negatively communities; it also leads to a sharp increase in food prices thereby increasing their costs of living. The activity has also caused a decline in fish catch levels which happens to be the main economic activity as a result of exclusion zones created by oil companies which limited the extent fishermen can go fishing. In terms of infrastructure, the three communities are lacking, 77% of respondents from Princess Town hold the view that there is no motorable road linking their community to the next town and 60% from Aketakyi also hold the same view. Infrastructure such as roads, schools, water provision, and clinics are woefully provided in these communities.

Arthur & Amo-Fosu (2020) investigated the benefits and challenges associated with oil and gas exploitation from the Ghanaian perspective. A case study design that embraced both quantitative and qualitative methodologies was adopted for the study. Communities close to the oil and gas production area (that is, the Jubilee Oil Field) were specifically targeted as the study population. The study identified five main environmental impacts of oil and gas exploitation in nearby communities; low fish catch, loss of jobs and livelihoods, increase in accommodation cost, environmental degradation or pollution and cultural change. Major benefits of oil and gas development were evident in activities such as the development of social amenities and appreciation of income levels for people living near oil and gas development sites. The research recommended the need to address the adverse effects of oil and gas exploitation through the reinforcement of strict rules and regulations regarding oil and gas exploitation activities in Ghana.

Sakyi et al. (2012) delved into the potential sources of pollution in the upstream sector of the oil and gas industry and their effects on the environment as well as the existing national environmental management legislations in the extractive industry, and the implementation and enforcement challenge these regulations face. The authors argued that a need for the government to formulate petroleum industry-specific environmental protection guidelines and appropriate regulatory frameworks. Such regulations in managing the environment should employ an integrated approach involving (i) the prescription of environmental codes and setting of standards by the government to be met by operators, and (ii) the need for oil companies to develop environmental management systems (EMS) to ensure that they operate within the environmental standards for the industry. Administrative and institutional restructuring and reforms, as well as the provision of the necessary financial and human resources for the various environmental agencies, should be encouraged to ensure effective implementation, enforcement and monitoring.

Weaknesses in Legal and Institutional Framework

Siakwah (2018) drew on actor-network theory (ANT) and assemblage to interrogate the potential future manifestation of open conflicts due to unresolved latent local socio-economic and political grievances associated with oil exploitation near fishing communities and the implications of oil-related environmental degradation on local livelihoods in the Western Region of Ghana. Drawing on network geographies, Siakwah (2018) argued that the impact of oil on the environment and conflict is conditioned and shaped by a ‘globalised assemblage’– interactions between and among states, and national, local and transnational actors.

Bad policies and (in) actions of government and its agencies, oil companies, and local actors damage the environment and livelihoods and generate displeasure among locals. Consequently, violent conflict can later emerge in Ghana if the latent fisherfolk’s grievances remain unresolved because conflicts are not events, but they build over time through complex processes. Unresolved environmental challenges compromise livelihoods create dissatisfaction among locals and can ferment conflicts in communities near the oil fields. Thus, inadequate engagement with locals to appreciate environmental challenges and covert conflicts between locals and government/companies highlights the temporality of oil impacts, where current tensions result in a future open display of resource-infused conflicts.

Aboagye et al. (2022) examined the nexus between environmental law enforcement and implementing SDGs in Ghana. The researchers adopted a complete interpretative document analysis for this study, which showed the careful but rigorous investigation of environmental law enforcement and SDGs. This technique confirmed the genuineness of the information studied and interpreted in the study. The study found that environmental law enforcement and the implementation of SDGs in Ghana are directly linked. Thus, the regulation aligns with the goals of 6, 7, 12, 13, 14, and 15 of the SDGs directly associated with environmental sustainability. Also, environmental law enforcement in Ghana through the Environmental Protection Agency (EPA) concerning Environmental Protection and Management is protective and suppressive. This study further unravels that a supervisory outline is mandatory to enable sustainable development within Ghana’s environmental protection and law enforcement issues and to guarantee its alignment with SDGs. This should be established based on the participation of stakeholders.

Bawole (2013) investigated the involvement of local stakeholders in the environmental impact assessment (EIA) processes of Ghana’s first off-shore oil fields (the Jubilee fields). Adopting key informants’ interviews and documentary reviews, the article argues that the public hearings and the other stakeholder engagement processes were cosmetic and rhetoric with the view to meeting legal requirements rather than a purposeful interest in eliciting inputs from local stakeholders. It further argues that the operators appear to lack the social legitimacy and social license that will make them acceptable in the project communities. A rigorous community engagement along with a commitment to actively involving local stakeholders in the corporate social responsibility (CSR) programmes of the partners may enhance the image of the partners and improve their social legitimacy. Local government agencies should be capacitated to actively engage project organisers, and the government must mitigate the impact of the oil projects through well-structured social support programmes.

Political Economy Barriers in Ghana’s Regulatory Environment

One of the understated challenges in Ghana’s oil governance lies in political interference, weak institutional autonomy, and vested interests in the award of contracts and environmental assessments. Regulatory capture, where influential oil companies sway decisions of institutions like the EPA or Petroleum Commission, undermines the objectivity and enforcement of environmental standards. Moreover, lobbying and patronage politics influence the prioritization of short-term gains over long-term sustainability (Quartey & Abbey, 2018; Owusu, 2018).

Learning from Global Best Practices

To enhance environmental governance in Ghana’s petroleum sector, a comparison with countries that have established mature oil regimes is essential. Two models stand out:

1. Norway’s Petroleum Act (1996) mandates environmental impact assessments (EIAs) for all upstream activities and requires oil companies to submit detailed decommissioning and clean-up plans. Norway’s Petroleum Safety Authority (PSA) operates with independence and adequate funding, ensuring consistent enforcement.
2. Nigeria’s Extractive Industries Transparency Initiative (NEITI), part of a broader global initiative, ensures transparency in contract awards, revenue flows, and environmental responsibilities. The NEITI Act compels companies to disclose data, and its model can help Ghana in enhancing transparency and curbing corruption.

METHODOLOGY

Introduction

This systematic review which adheres to PRISMA principles carefully identified, assessed, and synthesised research papers that identify the weaknesses in the legal and institutional framework in Ghana’s oil and gas sector. The databases utilised included ResearchGate, Scopus, Google Scholar and Web of Science. The major keywords shown in the research questions and abstract as well as their many permutations and synonyms were used in the search strategy. For instance, a sample search in Google Scholar looked like this: (“Gaps” OR “Weaknesses” OR Challenges) AND (“Legal” OR/AND “Institutional”) AND (“Oil and Gas industry” OR “Petroleum industry” AND (“Ghana”).

The study made the following considerations before including paper for review and assessment.  The empirical studies that have specifically identified the gaps or weaknesses in the legal and institutional framework in Ghana’s oil and gas sector that were published between January 2012 and September 2023. These papers were released in full text and published in English.

Empirical data was collected from the following agencies and institutions: Ghana National Gas Company Limited, Ghana National Petroleum Corporation, Quantum Terminals (Sage), ENI Exploration and Production Limited, Tullow Ghana Limited, National Petroleum Authority, Tema Oil Facility, Tema Oil Refinery, Tema LNG Facility, Environmental Protection Agency, Petroleum Commission, Ministry of Energy and Ministry of Environment, Science and Technology. Also, the study solicited information from the Ellembelle District Assembly, African Center for Energy Policy, and CSOs in the environment. The study interviewed top and middle-level staff of the above institutions particularly the legal, health and safety officers and other senior management team members

Data Analysis

The database search returned a total of 68 publications; after screening duplicates, 49 of them were excluded, leaving room for 19 unique studies; the remaining papers were then checked for inclusion, and 13 of them were excluded, leaving room for six research to be included in the analysis.

Figure 1: PRISMA Flowchart

Data Extraction and Synthesis

Two reviewers painstakingly extracted data using a standardised form that included information such as research design, publication year, significant results, and limitations. The gaps/weaknesses in the legal and institutional framework in Ghana’s oil and gas sector were the main areas of data extraction, as intended. A qualitative synthesis was then used to synthesize the data.

Risk of Bias

The Cochrane Risk of Bias tool was used to assess the risk of bias in each of the six studies, and it was determined that three of the studies had low risk, one had moderate risk, and two had high risk, with the high-risk studies being critically analysed but still being included to give a full picture.

To have a clear understanding of the gaps the analysis focused on three key dimensions which has been espoused below:

Dimension one: Examining whether there exists an appropriate legal and institutional framework that deals with environmental issues in Ghana’s oil and gas sector

Through the review of the literature and the primary data solicited the various dimensions of the legal and institutional framework relating to the environment were identified and their applicability to the study area was thoroughly examined and verified using five points Likert Scale. The data was analysed by converting the frequency of agreement into a percentage of agreement where any dimension with an agreement rate of more than 50% was deemed to be robust and appropriate.

Dimension Two: Investigating the extent of the implementation of laws by the institutions to deal with the environmental issues

The study again presented the identified legal and institutional framework dimensions to the respondents to determine their extent of the implementation. This was done through the application of the extent of implementation index where the variables were rated on a scale of 0-6 were 0: No Implementation; 1: Somehow implemented; 2: Slightly Implemented; 3: Moderately Implemented; 4: Highly Implemented; 5: Fully Implemented. The implementation index is based on the modification of the relative importance index proposed by Lim and Alum (1995).

The Relative Importance index was adjusted to Implementation Index as

Effectiveness Index (EI) =

Where:

n5= Fully implemented; n4 = Highly Implemented; n3= Moderately implemented; n2= Slightly implemented; n1= Somehow implemented; and n0= No implementation; N = number of respondents.

The mean score for each of the variables were computed using an implementation index where an index of 0.51-8.0: High implementation; 0.50-0.1: Partial Implementation; 0: No Implementation.

Dimension Three: Identifying the gaps in the legal and institutional framework and providing recommendations

The study employed thematic analysis to analyse the qualitative data collected for the gap analysis by grouping them into appropriate thematic areas.

FINDINGS

Examining the existence of an appropriate legal and institutional framework that deals with environmental issues in Ghana’s oil and gas sector

This section identified and examined the existence of an appropriate legal and institutional framework dealing with environmental issues in Ghana’s oil and gas sector. Through the literature review, a number of legal and institutional aspects were identified and presented to the respondents using a five-point Likert scale to determine the agreement, neutrality or disagreement. This section presents, analyse and discuss the results based on the data provided by the respondents. Table 1 contains the results of the indicators measuring the appropriateness of Ghana’s legal and institutional framework in the oil and gas sector.  Results from Table 1 show that there is agreement among the respondents that Ghana has robust laws to ensure safe water in the oil and gas industry with a frequency of 86 respondents representing 90.5%. The respondents further confirmed Ghana has robust laws to ensure clean air in the oil and gas industry and robust laws governing the disposal of solid and hazardous waste with a frequency rate of 88 and 86 representing 93.6% and 90.5% respectively. This finding is contrary to the views of Srapong (2016) whom the author averred that Ghana’s laws are inappropriate to deal with environmental issues due to lacuna and multiplicity of the agencies having unclear roles. The author failed to differentiate between the appropriateness of the law and its implementation.

Ghana has robust laws to prevent land degradation in the oil and gas industry and had a frequency agreement of 76 representing 80% of the total respondents. This implies that there are enough laws to deal with land degradation. Notable amongst the laws are Environmental Protection Agency (EPA) Act, 1994 (Act 490) and the Petroleum (Exploration and Production) (Health, Safety and Environment) Regulations, 2017 (LI 2258) which apply to all petroleum operations. Among others, it aims to prevent the adverse effects of petroleum activities on health, safety and the environment and promotes high standards of health and safety. It provides the minimum health and safety requirements applicable to contractors, subcontractors and other players within the industry. The key regulations related to the design and operation of facilities, systems and equipment, maritime facilities, load-bearing structures, drilling and well systems, emissions and discharges, decommissioning, risk analysis and emergency preparedness and reporting.

The laws require the establishment of appropriate institutions to ensure safe water in the oil and gas industry and the establishment of appropriate institutions to ensure clean air in the oil and gas industry had a frequency of agreement of 93 and 80 with a percentage of 97.9% and 84.2% respectively. The higher agreement rate confirms the establishment of institutions such as the Water Resources Commission, Environmental Protection Agency, Community Water and Sanitation Agency and Ghana Water Company Limited to ensure safe air and water for all citizens.  For instance, the establishment of the Environmental Protection Agency and Ghana Maritime Authority was occasioned by the passage of the Environmental Protection Agency (EPA) Act, 1994 (Act 490) and Ghana Maritime Authority Act 2002 (630).

The laws require the establishment of appropriate institutions to ensure safe disposal of solid and hazardous waste and the establishment of the appropriate institution with the mandate to prevent land degradation in the oil and gas industry had a frequency of agreement of 65 and 68 representing 68.4% and 62.4% respectively. This indicates that the respondents agreed to the requirement of the existing legal regime to formulate these institutions to ensure safe waste disposal and prevent land degradation. For instance, the Ministry of Sanitation and Water Resources has been established to ensure the safe disposal of solid and liquid wastes in Ghana.

Table 1: Legal and Institutional Framework

Source: Author’s calculations based on field data, 2025

Investigating the extent of the implementation of laws by the institutions to deal with the environmental issues

This Section examined the extent of the implementation of laws by the institutions to deal with the environmental issues. Through the literature review, the identified laws were presented to the respondents using a five-point Likert scale to determine the agreement, neutrality or disagreement on the extent of implementation of those laws. The identified variables were made to be ranked by the respondents on a scale of 0-5 from no implementation to full implementation. The mean score for each of the variables was computed using an implementation index where an index of 0.51-8: High implementation; 0.50 0.1: Partial Implementation; 0: No Implementation.

Table 2 contains the results of the level of implementation of the identified laws. Results from Table 2 show that the laws enacted to ensure safe water in the oil and gas industry have been highly implemented with an implementation index of 0.7 which falls under the high implementation category. This is based on the establishment of the Water Resources Commission, Ghana Maritime Authority, Ghana Water Company, and Ministry of Sanitation and Water Resources with all these agencies mandated to ensure Ghanaians have safe and clean drinking water and to protect Ghana water bodies.

The result from Table 2 further revealed that the laws enacted to ensure clean air in the oil and gas industry have been not been implemented with a low implementation index of 0.09. This is unsurprising because there is no clearly established agency to focus on preventing air pollution and no serious attention has been paid to compare to issues of land and water pollution.

From Table 4.7, with the exception of laws to ensure safe drinking water, all other laws concerning solid waste disposal, land degradation and the establishment of the appropriate to ensure good solid and waste disposal, as well as prevention of environmental degradation, has been partially implemented. This confirms the continuous degradation of our lands through illegal mining, sand wining, and deforestation thereby affecting rain patterns in Ghana and the oil districts. For instance, some communities such as Elononkata in the Ahanta West Municipality and Anokyi in the Ellembelle district cannot use their boreholes drilled for them due to the pollution of the water table.

Table 2: Implementation of Legal and Institutional Framework

Source: Author’s calculations based on field data, 2025

Thematic Analysis

The themes for the study were derived from the research objective that was posed. They are grouped into main themes and sub-themes as shown in Table 1 below.

Table 3 Themes and subthemes generated from the review

DISCUSSIONS

Gaps/weaknesses in the legal and institutional Framework for Environmental Protection in Ghana’s Oil and Gas Sector.

Ineffective Enforcement and Compliance

Ineffective enforcement and compliance mechanisms within Ghana’s oil and gas sector emerge as a critical concern in the studies reviewed. Aboagye et al. (2022) underscore the presence of significant challenges associated with the enforcement of existing environmental laws and regulations. These challenges point to a pressing need for the establishment of a comprehensive supervisory framework that can effectively monitor and ensure compliance with environmental standards. The inadequacy of enforcement measures raises questions about the sector’s ability to maintain the integrity of environmental regulations, safeguarding ecosystems and local communities from the potentially adverse impacts of oil and gas activities. Such inadequacies not only jeopardize environmental sustainability but also hinder the realization of the Sustainable Development Goals (SDGs), highlighting a pivotal area where legal and institutional reforms are essential to fortify the governance of the oil and gas industry in Ghana. This ineffectiveness is caused by perceived corruption and lobbying by actors in the sector. One respondent confirmed that, their group was able to influence either legislative proposals or halt its implementation through their lobbying group.

Limited Stakeholder Engagement

Limited stakeholder engagement in Ghana’s oil and gas sector, as illuminated by Bawole (2013) study, is a critical theme that underscores the shortcomings in the country’s environmental regulatory framework. The research reveals a disconcerting tendency towards a superficial and cosmetic approach to stakeholder involvement in the environmental impact assessment (EIA) processes, signifying a deficiency in fostering meaningful and substantial engagement of local stakeholders. This deficiency results in an evident gap when it comes to nurturing authentic public participation and the valuable inclusion of local perspectives in the decision-making processes related to oil and gas activities. Such limited stakeholder engagement not only fails to harness the collective wisdom and insights of those directly affected by oil and gas operations but also undermines the potential for fostering sustainable, socially responsible, and environmentally sound practices within the industry, ultimately jeopardizing the well-being of communities and the integrity of the environment.

Lack of Industry-Specific Environmental Guidelines

The absence of industry-specific environmental guidelines, as emphasized by Sakyi et al. (2012) signifies a critical gap in Ghana’s regulatory framework for the petroleum sector. Without tailored guidelines that specifically address the intricacies of oil and gas operations, the existing regulations may fall short of effectively mitigating the environmental impacts associated with these activities. The petroleum industry is distinct in terms of its potential for pollution, resource extraction, and its significant contribution to a nation’s economy. Failing to establish industry-specific guidelines could lead to a regulatory framework that lacks the necessary granularity to safeguard against environmental harm. This gap may also hinder the ability to hold oil companies accountable for their actions, potentially resulting in insufficient protection for the environment and surrounding communities. As such, the development and implementation of petroleum industry-specific environmental guidelines are imperative to ensure that the legal and institutional framework effectively addresses the unique challenges and risks posed by oil and gas exploration and production in Ghana. Some respondents opine that “the absence of specific guidelines make it difficult for the regulatory agencies to enforce the laws thereby rendering them ineffective”.

Inadequate Resources for Environmental Agencies

A critical concern surrounds the insufficient allocation of financial and human resources to environmental agencies responsible for regulating the oil and gas industry in Ghana. This inadequacy implies a potential hindrance to the effective implementation, enforcement, and monitoring of environmental regulations within the sector (Sakyi et al., 2012). Insufficient resources can result in reduced capacity for these agencies to carry out their vital roles, including conducting environmental assessments, monitoring compliance, and enforcing stringent regulations. This, in turn, may compromise the ability of environmental agencies to safeguard the environment, prevent pollution, and ensure that oil and gas operations adhere to sustainability standards. Thus, addressing the resource constraints faced by these agencies is imperative to enhance their ability to uphold environmental protection and sustainable practices in the oil and gas sector in Ghana.Top of Form

CONCLUSIONS AND RECOMMENDATION

Conclusions

This study aimed to identify the gaps and weaknesses in Ghana’s legal and institutional framework for environmental protection within the context of its oil and gas sector. To achieve this objective, the study conducted a comprehensive review of relevant literature in addition to empirical data, meticulously extracting and organizing the findings into themes and subthemes that align with the primary research goal of identifying these shortcomings. The findings underscore the notion that there are gaps in the legal and institutional framework for protecting the environment in the oil and gas sector. The identified themes, spanning ineffective enforcement, limited stakeholder engagement, the absence of industry-specific environmental guidelines, and resource constraints for regulatory agencies collectively emphasize the dire need for significant enhancements in the nation’s regulatory and institutional apparatus dedicated to environmental protection within the oil and gas sector. This multi-faceted array of weaknesses highlights not only the urgency of reform but also the interconnectedness of these issues, reinforcing the imperative for a holistic and integrated approach to addressing them.

Recommendations

Policy Recommendations: Policymakers should strengthen the enforcement mechanisms within the oil and gas sector’s environmental regulations through the establishment of a robust supervisory framework and compliance guidelines.

Practical Recommendations:  Encourage collaboration between oil and gas companies and local communities, actively involving stakeholders in corporate social responsibility (CSR) programs and fostering social legitimacy. Enhance the quality and transparency of environmental impact assessments (EIAs), seeking inputs from local stakeholders to ensure genuine environmental protection and community well-being. Implement well-structured social support programs addressing infrastructure deficiencies, alternative livelihood opportunities, and rising living costs.

Further Research Recommendations: Future studies should cconduct longitudinal studies to monitor policy effectiveness and sustainability, and perform comparative analyses with countries having successful oil and gas sectors to adapt best practices. Also, there should be continuous evaluation of policy and regulatory changes to address identified gaps, ensuring the legal and institutional framework’s ongoing improvement.

Proposed Reforms:

Table 4: Phased Reform Recommendations

REFERENCES

1. Aboagye, E. M., Effah, K. O., & Mensah, F. (2022). Achieving Sustainable Development Goals: the nexus between environmental law enforcement and SDGs in Ghana. Journal on Innovation and Sustainability RISUS, 13(4), 135-145.
2. Abudu, H., & Sai, R. (2020). Examining prospects and challenges of Ghana’s petroleum industry: A systematic review. Energy Reports, 6, 841-858.
3. Albeldawi, M. (2023). Environmental impacts and mitigation measures of offshore oil and gas activities. In Developments in Petroleum Science (Vol. 78, pp. 313-352). Elsevier.
4. Alemzero, D. A., Iqbal, N., Iqbal, S., Mohsin, M., Chukwuma, N. J., & Shah, B. A. (2021). Assessing the perceived impact of exploration and production of hydrocarbons on households’ perspective of environmental regulation in Ghana. Environmental Science and Pollution Research, 28, 5359-5371.
5. Arthur, J. L., & Amo-Fosu, C. (2020). Oil and gas exploitation in the Ghanaian context: The balance of benefits and challenges. African Journal of Environmental Science and Technology, 14(7), 177-182.
6. Asare, S. A., Gbedemah, S. F., & Mensah, P. A. A. (2021). Assessment of Compliance with Environmental Health and Safety Procedures in the Petroleum Downstream Sector–a Case Study of Fuel Service Stations in the Adentan Municipal Area of the Greater Accra Region, Ghana. International Journal of Environmental Science, 6.
7. Bawole, J. N. (2013). Public hearing or ‘hearing public’? An evaluation of the participation of local stakeholders in environmental impact assessment of Ghana’s Jubilee Oil Fields. Environmental management, 52, 385-397.
8. Boatey, E. K., Owusu, J., & Agyeman, K. O. (2022). Regulatory measures to protect the environment in the oil and gas industry in Ghana: A review. Journal of Environmental Law and Policy, 23(2), 214-235.
9. Garcia-Gonzales, A., Shonkoff, S. B., Hays, J., & Jerrett, M. (2019). Hazardous air pollutants associated with upstream oil and natural gas development: a critical synthesis of current peer-reviewed literature. Annual review of public health, 40, 283-304.
10. Ghana Statistical Service. (2023). Quarterly Digest of Statistics, First Quarter, 2023. Accra: Ghana Statistical Service.
11. International Energy Agency. (2022). Global coal mining waste production. Retrieved from https://www.iea.org/data-and-statistics/charts/global-coal-production-2000-2025
12. Jones, M. (2021). Sustainable Development and Environmental Responsibility in Ghana’s Oil and Gas Sector. Environmental Policy Journal, 20(3), 45-62.
13. Mohammed, A. S., Graham, E., & Dary, S. K. (2022). Rising expectations and dying hopes: Local perceptions of oil and gas extraction in Ghana. Energy Research & Social Science, 88, 102529.
14. Owusu, B. (2018). ‘Doomed by the ‘resource curse?’Fish and oil conflicts in the Western Gulf of Guinea, Ghana. Development, 61, 149-159.
15. Owusu-Ansah, F., & Boateng, K. (2021). The role of customary law in environmental protection in Ghana: A case study of the oil and gas sector. Journal of African Law, 65(3), 469-489.
16. Quartey, P., & Abbey, E. (2018). Ghana’s oil governance regime: Challenges and policy solutions (No. 70). CRPD Working Paper.
17. Sakyi, P. A., Efavi, J. K., Atta-Peters, D., & Asare, R. (2012). Ghana’s quest for oil and gas: Ecological risks and management frameworks. West African Journal of Applied Ecology, 20(1), 57-72.
18. Siakwah, P. (2018). Actors, networks, and globalised assemblages: Rethinking oil, the environment and conflict in Ghana. Energy Research & Social Science, 38, 68-76.
19. Tambol, T., Vodounou, G. M. B., & Moussa, S. (2023). Impacts of Mining on the Environment in West African Sahel: A Review. Environmental Protection Research, 263-277.
20. Vora, M., Sanni, S., & Flage, R. (2021). An environmental risk assessment framework for enhanced oil recovery solutions from the offshore oil and gas industry. Environmental impact assessment review, 88, 106512.
21. Voronov, M., & Weber, K. (2020). People, actors, and the humanizing of institutional theory. Journal of Management Studies, 57(4), 873-884.
22. Yang, Y., Lau, A. K., Lee, P. K., Yeung, A. C., & Cheng, T. E. (2019). Efficacy of China’s strategic environmental management in its institutional environment. International Journal of Operations & Production Management, 39(1), 138-163.
23. Yin,, Liu, L., & Gu, H. (2022). Green paradox or forced emission reduction—the dual effects of environmental regulation on carbon emissions. International Journal of Environmental Research and Public Health, 19(17), 11058.
24. Young, O. R., & Stokke, O. S. (2020). Why is it hard to solve environmental problems? The perils of institutional reductionism and institutional overload. International Environmental Agreements: Politics, Law and Economics, 20, 5-19.