Major Economic Developments in Ghana: VAT Reforms, Pension Increases, and Corporate Transactions

Recent economic developments in Ghana have highlighted significant changes in taxation, pensions, and corporate transactions. The Ghana Revenue Authority (GRA) has announced a comprehensive overhaul of the Value Added Tax (VAT) system, effective January 1, 2026. Key reforms include a reduction of the VAT rate from 20%, an increase in the VAT registration threshold from GH¢200,000 to GH¢750,000, and the abolition of the COVID-19 Health Recovery Levy. The GRA aims to simplify the VAT structure and enhance compliance, particularly for small to medium enterprises. In collaboration with the Ghana Union of Traders’ Associations (GUTA), the GRA has also established a transition plan to facilitate the implementation of the new VAT Act, ensuring that traders are adequately supported during this period.

In parallel, the Social Security and National Insurance Trust (SSNIT) has approved a 10% pension indexation for 2026, raising the minimum monthly pension to GHS 400 from GHS 300. This increase, which represents a 36.52% rise, is designed to assist low-income pensioners amid rising inflation, with the highest pensioner set to receive GHS 213,991.47 monthly.

On the corporate front, Nigerian billionaire Femi Otedola has divested a 77% stake in Geregu Power Plc for $750 million to MA’AM Energy Ltd, marking a significant transaction in Nigeria's energy sector. This sale, which involved Otedola's 95% stake in Amperion Power Distribution Company, underscores ongoing shifts in the power industry.

These developments reflect a dynamic economic landscape in Ghana and Nigeria, with implications for businesses, investors, and citizens alike.