Former Speaker of Parliament, Professor Mike Oquaye, has strongly criticised the royalty structure in Ghana’s lithium mining agreement with Barari DV, describing it as unfair and damaging to the country’s long-term economic interests.

His comments come in the wake of Parliament’s decision to withdraw the revised lithium agreement on December 10 to allow for broader stakeholder consultations. The move followed concerns raised by the Majority Caucus that the proposed 10 per cent royalty rate negotiated under the Akufo-Addo administration conflicts with the Minerals and Mining (Amendment) Act, 2010, which sets a 5 per cent royalty ceiling.

Speaking in an interview on Channel One TV on Monday, December 15, Prof. Oquaye argued that the public debate has been overly fixated on whether the royalty rate should be 10 per cent or 5 per cent. He stressed that the real issue is Ghana’s failure to negotiate fair and sustainable returns from its natural resources.

According to him, the long-standing acceptance of a minimum royalty rate of 5 per cent reflects a deeper structural problem in Ghana’s extractive sector governance.

“The present withdrawal is quite interesting because some people have viewed it in the context of the royalty percentage, from 10 per cent to 5 per cent. But this 5 per cent has existed for some time,” he noted.

Prof. Oquaye expressed concern that Ghana continues to accept minimal compensation for minerals of high strategic and commercial value.

“It’s very painful to envisage that we have something that has got value, and then we say, when you take this commodity, don’t give me more than 5 per cent. Who does that?” he asked.

He described the situation as a national failure, insisting that Ghana has not been fair to itself in negotiating extractive agreements. In his view, the country should be demanding royalty rates of no less than 20 per cent, particularly for critical minerals such as lithium, which are central to global energy transitions.

The lithium agreement, presented to Parliament by the Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, covers the exploration and mining of lithium and other minerals at Mankessim in the Central Region.

The controversy surrounding the deal has reignited broader calls for reforms in Ghana’s mineral governance framework, with growing demands for stronger contract terms that prioritise national benefit, value retention, and long-term economic sustainability.