The Environmental Protection Agency (EPA) has more than tripled its accumulated fund from GH¢110.59 million in 2024 to GH¢375.19 million in 2025, recording an increase of more than GH¢264 million in a single year, according to the latest State Ownership Report by the State Interests and Governance Authority (SIGA).
The sharp improvement in the Authority’s financial position is among the strongest indicators yet of the EPA’s growing financial resilience as it transitions into the Environmental Protection Authority under the Environmental Protection Act, 2025 (Act 1124).
SIGA attributes the significant growth in the accumulated fund to the retention of operating surpluses and improved financial performance during the year.
“This significant growth reflects an enhanced net asset position, driven by the retention of operating surpluses and improved financial performance during the year,” SIGA explained.
The Authority further concluded that the combination of the EPA’s stronger accumulated fund and significantly lower debt burden points to a more sustainable and resilient institution.
“Overall, the Agency’s lower debt burden, coupled with a stronger accumulated fund, indicates improved financial sustainability and a more resilient financial position,” the report stated.
Income rises by 24%
The strong balance-sheet position was backed by a substantial increase in the EPA’s income.
SIGA reports that total income rose by 24.12%, from GH¢246.80 million in 2024 to GH¢306.34 million in 2025.
The increase was driven largely by the Authority’s ability to mobilise internally generated funds, which grew from GH¢243.80 million to GH¢303.97 million over the same period.
The figures underline the EPA’s growing ability to finance its operations from its own revenue-generating activities rather than depending heavily on external funding.
Nearly all EPA revenue generated internally
SIGA gave particular recognition to the Authority’s internally generated revenue performance.
IGF accounted for 99.23% of total income in 2025, compared with 98.80% in 2024.
According to SIGA, the figures show that “virtually all the Authority’s revenue was generated from its core operational activities.”
The Authority said this demonstrates the EPA’s strong capacity to mobilise internal revenue and its limited reliance on external funding sources.
“This underscores the EPA’s strong capacity to mobilise internal revenue and its limited reliance on external funding sources,” SIGA noted.
The Authority also maintained an IGF-to-total expenditure ratio above the 100% benchmark.
The ratio stood at 108.05% in 2025, compared with 108.30% in 2024.
SIGA says the consistently strong ratio confirms that the EPA’s internally generated funds were more than adequate to finance its expenditure obligations.
“This consistently strong coverage ratio, remaining comfortably above the 100 percent benchmark, affirms the Agency’s robust financial self-sufficiency,” the report said.
It added that the performance demonstrates the EPA’s capacity to sustainably finance its operations through internally generated resources “without recourse to significant external financing support.”
EPA records GH¢25m surplus despite higher expenditure
The improved financial position was achieved despite a significant increase in expenditure.
Total expenditure increased by GH¢56.18 million, largely due to higher staff costs, which rose from GH¢107.71 million in 2024 to GH¢163.41 million in 2025.
Yet, the Authority still ended the year with a net surplus of GH¢25.01 million.
SIGA says the performance demonstrates the EPA’s ability to operate within its available resources even as its expenditure increases.
“Despite the increase in expenditure, total income exceeded total expenditure in both financial years, reflecting the Agency’s continued ability to operate within its available resources and demonstrating an overall improvement in its financial performance,” the report stated.
Debt exposure falls sharply
Another major indicator of the EPA’s improving financial health is the sharp reduction in its debt exposure.
The Agency’s debt-to-asset ratio fell from 16.53% in 2024 to 4.91% in 2025.
In practical terms, only 4.91% of the Agency’s total assets were financed through debt in 2025, compared with 16.53% the previous year.
SIGA describes the development as a “substantial reduction in its financial leverage.”
The Authority says the figures demonstrate a significant deleveraging trend and a progressively more conservative capital structure.
“This favourable shift in the Agency’s gearing position reflects a progressively more conservative capital structure, underpinned by a growing reliance on internally generated resources rather than external debt instruments to finance its asset base,” SIGA said.
The lower debt burden, combined with stronger internally generated revenue and the growth in accumulated funds, gives the EPA a considerably stronger financial foundation as it assumes an expanded mandate as an Authority.
Liquidity remains strong
The EPA also maintained a strong short-term liquidity position, despite a moderation from the exceptionally high level recorded in 2024.
Its current ratio declined from 5.04 in 2024 to 2.76 in 2025.
SIGA, however, says the 2025 figure remains comfortably above the generally accepted benchmark of 2.00.
“The current ratio of 2.76:1 in FY2025 nonetheless remains comfortably above the generally accepted benchmark of 2.00, confirming that the Agency’s short-term liquidity position remained strong,” SIGA stated.
The short-term debt coverage ratio also declined, from 487.43% to 201.71%, but remained substantially above the 100% threshold.
SIGA says this confirms that the EPA continues to have more than sufficient capacity to service its short-term debt obligations from its available resources.
A financially stronger EPA enters a new era
The financial indicators come as the EPA undergoes one of the most significant institutional transformations in its history.
Following the passage of the Environmental Protection Act, 2025 (Act 1124), the Agency is transitioning into the Environmental Protection Authority, with a broader environmental governance and enforcement mandate.
Under the leadership of Prof. Nana Ama Browne Klutse, the institution is operating against this backdrop of expanded responsibilities, making the financial performance captured by SIGA particularly significant.
The 2025 figures show an institution that generated GH¢306.34 million in total income, mobilised GH¢303.97 million in internally generated funds, recorded a GH¢25.01 million surplus, reduced its debt-to-asset ratio to 4.91% and increased its accumulated fund to GH¢375.19 million.
Taken together, SIGA’s assessment presents a picture of an institution with stronger internal revenue mobilisation, improved financial sustainability, significantly reduced leverage and a much stronger accumulated fund.
Beyond the balance sheet
The EPA’s financial performance is occurring alongside a growing role in Ghana’s climate and environmental governance.
In 2025, SIGA records the Authority’s implementation of Carbon Market Mechanisms under Article 6 of the Paris Agreement, including carbon market development, carbon trading, project authorisation and carbon crediting initiatives.
The Authority also marked major international environmental events, including World Environment Day, World Oceans Day, the World Day to Combat Drought and Desertification and the International Day for the Preservation of the Ozone Layer.
SIGA reports that the EPA did not report any quasi-fiscal activities during the 2025 financial year.
A promising outlook
The latest SIGA assessment offers a strong financial foundation for the EPA as it assumes the expanded responsibilities of an Authority.
The more than threefold growth in accumulated funds, strong internally generated revenue, positive surplus, reduced debt exposure and healthy liquidity position collectively point to an institution that has strengthened its financial footing.
For Prof. Nana Ama Browne Klutse and the EPA, the numbers provide a compelling indication that the institution is entering its new era from a position of considerably greater financial resilience.
And with an expanded legal mandate, growing emphasis on digitalisation, environmental enforcement, climate action and carbon markets, the financial position documented by SIGA suggests that the future of the Environmental Protection Authority could be significantly stronger than its past.
By Carlos A. Calony
