Fiscal Management of Mining and Petroleum in West Africa

February 27 - March 1, 2018
Accra, Ghana

February 27, 2018 - March 1, 2018

The conference brings together government officials from selected countries in West Africa with current or prospective mining and petroleum activities. The topic is how to improve fiscal management of mining and petroleum, integrating fiscal regime design, revenue administration, and macro-fiscal policy. The novelty of the conference is that it will emphasize how these policy areas are interlinked—weaknesses in one area will undermine progress in others—and need to be addressed in a consistent and comprehensive manner. 

West Africa has been negatively impacted by the decline in commodity prices in recent years. For countries with petroleum or mining extraction, fiscal pressures have increased as revenues have declined; in countries with exploration, investors have become more cautious, scaling back planned activities in some places. 

The main areas for fiscal management of natural resources are: (i) design and evaluation of fiscal regimes for EIs; (ii) fiscal regime implementation and revenue administration; and (iii) public financial management of the resulting revenue flow, including the design of macro-fiscal frameworks and integration of revenue flows into the budget framework. 

This conference, co-hosted by the Government of Ghana, is organized by the African and Fiscal Affairs Departments and financed by the IMF’s externally-funded Managing Natural Resource Wealth Topical Fund.


8:00-9:00 am


9:00-9:05 am

Opening remarks

Ms. Natalia Koliadina, IMF Resident Representative in Ghana, IMF

9:10-9:20 am

Official Welcome Remarks

Ms. Carla Grasso, Deputy Managing Director and Chief Administrative Officer, IMF

9:20-9:45 am

Keynote Address: Fiscal Management of Mining and Petroleum in West Africa

Hon. Dr. Mahamudu Bawumia, Vice President of the Republic of Ghana

Keynote Speech: English

9:45-10:00 am

Coffee break

Session 1: Recent mining and petroleum fiscal developments in West Africa

Chair: Thomas Baunsgaard, IMF

10:00-10:30 am

1.  Impact of commodity prices on resource rich countries in West Africa

Mr. Tobias Rasmussen, IMF

Presentation: EnglishFrench

10:30-11:15 am

2. Fiscal impact of “lower for longer” petroleum prices and investment outlook in established and prospective petroleum producers

Mr. Bassey Mkpa, Nigeria Federal Ministry of Finance 

Presentation: EnglishFrench

Dr. Joe Asenso, Ghana Ministry of Finance

Presentation: EnglishFrench

11:15-12:00 pm

3. Fiscal performance and investment outlook for mineral producers

Mme. Salleye Soumana, Niger Ministry of Mines

Presentation: EnglishFrench

Mr. Jamel Dugbeh, Liberia Ministry of Finance and Development Planning
Ms. Athelia Korvah, Liberia Revenue Authority

Presentation: EnglishFrench

12:00-12:45 pm

Open discussion to conclude session 1

Chair to moderate and open the floor to Q&As

12:45-2:00 pm

Luncheon address: How Can West Africa Benefit Most from Extractive Industries

Dr. K.Y. Amoako, President of the African Center for Economic Transformation (ACET)

Session 2: Design principles and practice: mining and petroleum fiscal regimes in West Africa

Chair: Alistair Watson, IMF

2:00-2:30 pm

4. Fiscal regimes for extractive industries in West Africa: principles and practice

Mr. Diego Mesa Puyo, IMF

Presentation: EnglishFrench

2:30-3:00 pm

5. Petroleum Fiscal Reform in Nigeria: re-balancing the government take and encouraging cost reduction.

Dr. Timothy Okon and Mr. Joseph Nwakwue, Nigerian Ministry of Petroleum Resources

Presentation: EnglishFrench

3:00-3:30 pm

6. Managing the transition to a new mining code: features, improvements and remaining challenges of the Guinean experience

Mr. Mamady Kaba, Guinean Ministry of Finance and Economy and Mr. Bouna Sylla, Guinean Ministry of Mining

Presentation: EnglishFrench

3:30-4:15 pm

Open discussion to conclude session 2

Chair to moderate and open the floor to Q&As

4:15-4:30 pm

Coffee break

4:30-6:00 pm

7. Panel Discussion with Civil Society and private sector on Fiscal Reform Priorities for Mining and Petroleum

Moderator: Mr. Thomas Baunsgaard (IMF)

Panelists: Mr. Steve Manteaw (EITI); Benjamin Boakye (ACEP); Sulemanu Koney (Ghana Chamber of Mines); Mr. George Kwatia (Ghana PwC); and Mr. Tesa Ayernor (Tullow Ghana Limited)


Session 3: Administering fiscal regimes for mining and petroleum: Issues and Challenges in West Africa

Chair: Diego Mesa Puyo, IMF

9:00-9:45 am

8. Common challenges in implementing and administering fiscal regimes for mining and petroleum in the region

Mr. Scott Shelton, IMF external expert

Presentation: EnglishFrench

Note: EnglishFrench

9:45-10:30 am

9. Transfer pricing and valuation issues in mining

Mr. Dan Devlin, OECD

Presentation: English; French

Ms. Alexandra Readhead, IGF

Presentation: English; French

10:30-10:45 am

Coffee break

10:45-11:30 am

10. Mineral pricing challenges and valuation issues in Sierra Leone and Mali

Mr. Abu Bockarie Tarawalie, Sierra Leone National Revenue Authority

Presentation: English; French

Mr. Mohamed Traoré, Mali Ministry of Finance and Economy

Presentation: EnglishFrench

11:30-12:30 pm

11. Revenue administration issues for joint-development zones: the experience of Senegal and Mauritania; [and Sao Tome]

Mr. Bassirou Faye, Senegal National Revenue Authority

Presentation: EnglishFrench

Mr. Álvaro Silva, Sao Tome & Principe National Agency of Petroleum

Presentation: EnglishFrench

12:30-2:00 pm


2:00-2:45 pm

12. The Use of Fiscal Modeling to Strengthen Tax Administration Risk Assessment

Mr. Alistair Watson, IMF external expert
Mr. Scott Shelton, IMF external expert

Note: EnglishFrench

Session 4: Macro-fiscal policy options for managing mining and petroleum revenue in West Africa

Chair: Mr. Tobias Rasmussen, IMF

2:45-3:30 pm

13. Macro-fiscal frameworks for managing petroleum and mining revenue

Mr. Thomas Baunsgaard, IMF

Presentation: EnglishFrench

Note: EnglishFrench

3:30-4:15 pm

14. The experience of Ghana and Sierra Leone with macro-fiscal frameworks and institutional reforms

Dr. Alhassan Iddrisu, Director Ghana Ministry of Finance

Presentation: EnglishFrench

Mr. Lansana Fofanah, Sierra Leone Ministry of Finance and Economic Development
Mr. Alimamy Bangura, Sierra Leone Ministry of Finance and Economic Development

Presentation: EnglishFrench

4:15-4:30 pm

Coffee break

4:30-5:30 pm

15. Concluding panel: lessons learned and way forward

Mr. Thomas Baunsgaard, IMF

Timothy Okon, Nigerian Ministry of Petroleum Resources

Alexandra Readhead, IGF

Aminata Seck, Senegalese Ministry of Mines

Athelia Grasco Korvah, Liberia Revenue Authority.

5:30-5:45 pm

16. Closing remarks

Kwaku Kwarteng, Deputy Minister of Revenue, Ministry of Finance in Ghana

Closing remarks: English


Hands-on Workshop: Fiscal Modeling of Extractive Industries using the FARI Methodology

9:00-9:30 am

1. Why it is important to model fiscal regimes for extractive industries (EI)?

This introductory session briefly defines the fiscal regime for EI, and introduces participants to project modeling, and discounted cash flow analysis

Presentation: EnglishFrench

9:30-10:15 am

2. The FARI modeling framework

Brief walk through the model components (inputs, calculations or workings, and outputs). The aim here is to introduce participants to the model structure

Presentation: EnglishFrench

10:15-10:45 am

3. Country experiences: Guinea

Country officials will explain how modeling is done in their countries

10:45-11:00 am

Coffee break

11:00-12:15 pm

4. Modeling a tax/royalty regime

This session discusses the main fiscal instruments used in tax/royalty regimes and how to model them (includes case study in Excel)

FARI Case Studies for sessions 4, 5 and 6: EnglishFrench

12:15-1:45 pm


1:45-3:30 pm

5. Modeling a production sharing contract (PSC)

This session discusses the fiscal instruments of PSCs and how to model them (includes case study in Excel)

3:30-3:45 pm

Coffee break

3:45-4:45 pm

6. Fiscal regime evaluation

Discussion of the main indicators used in FARI (i.e., AETR, payback period, breakeven price, METR, progressivity) and how to interpret results when comparing fiscal regimes (includes case study in Excel)

4:45-5:15 pm

7. Other FARI uses beyond fiscal regime analysis

Brief discussion on using FARI for revenue forecasting and tax administration.

Presentation: EnglishFrench

5:15-5:45 pm

8. Country experiences: Ghana and Sierra Leone

Dr. Joe Asenso, Ghana Ministry of Finance and Mr. Lansana Fofanah, Sierra Leone Ministry of Finance and Economic Development, will explain how modeling is done in their countries.