Finance Ministry Clears Two-Year Salary Backlog for Ghana Railway Workers | Discuss Ghana

In a massive sigh of relief for hundreds of transit sector employees, the Minister for Transport, Hon. Joseph Bukari Nikpe, has announced that the Ministry of Finance has officially released the final tranche of funds required to pay off all outstanding salary backlogs owed to railway workers across the country.

The crucial financial clearance, finalized today, Wednesday, May 20, 2026, brings an end to a grueling multi-year stretch of financial hardship for workers under the Ghana Railway Company Limited (GRCL), who have been protesting over severe payment defaults.

The Anatomy of a Two-Year Financial Crisis

According to the Transport Minister, the massive salary backlog systematically accumulated over the past 24 months due to a near-total operational collapse within the state-owned railway sector.

Minister Nikpe explained that the technical and structural paralysis of the rail lines directly destroyed the company's internal liquidity:

"The salary backlog accumulated over the past two years due to the non-functioning state of the railway sector, which severely affected its ability to generate enough independent revenue to meet workers’ salaries and cover other daily operational obligations. The state has had to step in directly to clear this burden so we can start on a clean slate."

The Structural Deficit of the Rail Lines

The structural reality behind the collapse stems from a lack of active rolling stock and passenger traffic on Ghana's traditional lines:

The Revenue Deficit: The Western Line (Tacoradi to Nsuta) has faced frequent interruptions, while passenger services on the Accra-Tema and Kojokrom-Takoradi routes have barely generated enough ticket sales to maintain basic locomotive fuel, leaving the company heavily reliant on government bailouts.

The Union Pressure: The Ghana Railway Workers Union, led by General Secretary Godwill Ntarmah, has consistently warned that the persistent neglect of workers' welfare was driving away top-tier mechanical engineers and safety inspectors to private mining firms, threatening the long-term survival of the railway revitalization project.

A Clean Slate for Revitalization

With the Finance Ministry officially clearing the debt sheet, the Ministry of Transport is shifting its immediate focus back toward the major infrastructure overhaul intended to make the railway sector self-sustaining.

The Tema-Mpakadan Corridor: Technical teams are finalizing safety runs on the flagship 97km Tema-Mpakadan rail line, part of the multi-modal transport system linking the Port of Tema to the northern parts of Ghana via the Volta Lake. Commercial operations on this line are expected to provide a massive, immediate revenue life-raft for the GRCL.

The European Investment Boost: The ministry is fast-tracking negotiations to lock down structural rolling stock partnerships with European suppliers to ensure that once lines are constructed, modern, functional passenger and cargo trains are deployed immediately to prevent another operational freeze.