Editorial: Minerals income governance needs strengthening…

Civil Society Organisations (CSOs) focused on the extractive sector want further legislative reforms to strengthen governance and transparency of the Minerals Income Investment Fund (MIIF).

The CSOs’ concerns centre particularly on the reduction of MIIF’s share of mineral income to just two percent. Under the revised arrangement, the bulk of royalties and dividends is now directed into the Consolidated Fund – a shift they argue could undermine MIIF’s original mandate and effectiveness.

However, Mr. Tuinese Edward Amuzu – Head of Legal at MIIF – maintains the amendments introduced in 2020 and 2025 redefined the Fund’s operational framework and long-term strategic direction.

The Executive Director-Institute for Democratic Governance (IDEG), Emmanuel Akwetey, questioned MIIF’s operational capacity and long-term sustainability under this new framework.

He recalled that under the Minerals Income Investment Fund Act, 2018 (Act 978), mineral revenues comprising royalties and dividends were paid into an account controlled by MIIF.

It allowed the fund to retain a substantial portion of these revenues for investment and operational purposes, while also allocating shares to other statutory bodies.

But the amended system requires all mineral income to first be deposited into a minerals income holding account managed by the Ministry of Finance (MoF) and Controller and Accountant-General.

Only two percent is disbursed to MIIF, with the remainder transferred into the Consolidated Fund for other government expenditures. Mr. Akwetey believes this change could constrain MIIF’s ability to function effectively as an investment vehicle.

The push for reform comes against a backdrop of MIIF’s strongest financial performance to date. The fund recorded total mineral royalty inflows of GH?5.43billion in 2025, a 10.8 percent increase over the GH?4.91billion collected in 2024 and the highest annual figure in the institution’s history.

The performance was achieved despite appreciation of the cedi, which typically depresses the local currency value of dollar-denominated mineral revenues.

Consequently, Chief Executive Officer-MIIF Justina Nelson noted that MIIF has entered 2026 from a position of strength.

MIIF’s improved revenue collection has been reinforced by closer collaboration with Ghana Revenue Authority (GRA) and more efficient data-sharing systems, enabling better tracking and enforcement of royalty obligations.

Established under Act 978, MIIF holds a threefold mandate: receiving mineral royalties on behalf of the state, investing those revenues for sustainable returns and managing the country’s equity interests in large-scale mining companies.

This mirrors sovereign wealth fund structures employed in resource-rich economies to convert extractive revenues into diversified financial assets.

CSO representatives, while acknowledging recent amendments represent progress, believe additional legislative safeguards are necessary to cement transparency.

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