‘From 10% to 5%?’ — Confusion as Lithium Deal Sparks Fresh Political Debate Between NPP and NDC
Ghana’s controversial lithium agreement is back in the headlines as fresh reports suggest that the new government has renegotiated state interest in the deal from 10% to 5%, triggering widespread public confusion and political debate.
The development comes barely a year after the National Democratic Congress (NDC), then in opposition, fiercely criticized the ruling New Patriotic Party (NPP) for the original terms of the lithium agreement with Barari DV Ghana Ltd, a subsidiary of Atlantic Lithium.
Background: NPP’s 10% Deal and NDC’s ‘Nebuchadnezzar’ Criticism
In 2023, the NPP government announced Ghana’s first lithium mining lease, securing:
- 10% free carried interest for the state
- Up to 19% additional stake through paid equity
- Royalties at 10%
- A 1% growth and development levy
- Local processing requirement to boost value addition
The NDC sharply opposed the agreement, arguing that Ghana deserved a far larger stake in its critical mineral resources. Leading members accused the government of behaving like “Nebuchadnezzar”, suggesting arrogance and insensitivity to public concerns.
The political tension over the deal became a major talking point throughout the 2024 campaign.
New Twist: Reports of a Reduction to 5%
However, new claims circulating this week indicate that the current government has revised the state’s stake downward to 5%, a move that has shocked many Ghanaians who expected a tougher, more resource-nationalist approach.
Citizens on social media and civil society organisations have begun demanding answers, questioning:
- Why would a government that condemned 10% as inadequate now reduce the stake to 5%?
- What economic or strategic justification supports the renegotiation?
- Was the earlier criticism politically motivated, or does the new government have access to different information?
As of now, no official public statement has confirmed or denied the renegotiation, but the widespread reports have already ignited political discourse.
Public Reaction: “What Changed?”
Many citizens say they feel betrayed, especially those who believed the lithium sector would become a symbol of Ghana’s push for fairer mineral agreements.
Civil society actors who previously pushed for improved terms have begun asking for:
- Full disclosure of the revised contract
- A breakdown of fiscal benefits under the new percentages
- Parliamentary scrutiny before any new lease is executed
Economists also warn that a reduction in state stake could significantly alter projected revenues from Ghana’s emerging green minerals industry.
Analysts: A Political Boomerang?
Political observers note that the situation is rapidly turning into a boomerang effect for the NDC.
“The opposition heavily criticised the 10% and called it exploitative. If they have now reduced it to 5%, it creates a credibility dilemma,” a policy analyst told Nsemgh. “Ghanaians will want to know what changed.”
Others believe the new government may be facing investment pressure, regulatory constraints, or global market realities that were not fully appreciated during the opposition years.
Calls for Transparency Intensify
Transparency groups are urging the Minerals Commission and Ministry of Lands and Natural Resources to:
- Publish all contract amendments
- Provide justification for any reduction
- Explain the long-term revenue impact on Ghana
With lithium becoming a highly sought-after resource in the global clean-energy transition, many argue that Ghana must avoid repeating the mistakes of the gold and oil sectors, where opaque agreements led to limited national benefit.
What Happens Next?
Until government officials issue a formal clarification, the controversy is expected to deepen. Both major political parties now face intense scrutiny as citizens question whether Ghana’s lithium wealth is being negotiated with the national interest at heart.
For now, the debate continues — and Ghanaians are watching closely.