Former Chief Justice Sophia Akuffo has cautioned against the early ratification and extension of oil agreements, warning that such decisions could lock Ghana into inflexible and costly long-term commitments.

Speaking on PM Express Business Edition on Joy News, she questioned the rationale behind extending petroleum contracts years before their expiration dates.

According to her, if an agreement still has a decade or more to run, any renewal should take effect only after the original term ends — not immediately. She argued that Parliament should avoid ratifying extensions that prematurely bind the country.

Contracts should not be untouchable

Responding to a question from host George Wiafe on whether already extended agreements should be reviewed, Justice Akuffo criticised what she described as Ghana’s rigid mindset toward contracts.

She suggested that agreements are often treated as permanently fixed, with little room for reconsideration, even when circumstances change. Going forward, she stressed, new contracts must contain clearly defined review and renegotiation clauses.

“I cannot say go and renegotiate an agreement if in the document you have not given yourself the right or the power of renegotiation under specified circumstances,” she noted, “but going forward, there should be.”

Concerns over arbitration and disputes

The former Chief Justice also raised concerns about arbitration clauses that require disputes to be resolved in foreign jurisdictions, arguing that such arrangements often disadvantage Ghana.

Referring to recent disputes involving Tullow Oil, she expressed frustration over the handling of arbitration proceedings and the financial consequences for the country.

She further cited the Atlantic Lithium agreement as an example of how fiscal terms can be structured to better protect national interests. In particular, she pointed to “topside” royalty arrangements that adjust state earnings upward as commodity prices rise, rather than leaving revenue gains uncapped.

Call for structural reform

Justice Akuffo warned that Ghana often leaves contractual loopholes that benefit counterparties while binding itself too tightly. She urged policymakers to rethink negotiation strategies and ensure future agreements incorporate safeguards that protect national interests.

Her central message was clear: Ghana must avoid locking itself into rigid frameworks that limit flexibility and expose the country to costly legal and financial risks.