Under this deal, Next Gen Infraco Limited has been granted exclusive rights to build, own, and operate the entire 5G infrastructure network across the country.
This network will be used by all mobile network operators, internet service providers, and other interested entities.
Executive approval
Executive approval for this deal was granted by President Nana Addo Dankwa Akufo-Addo on 22 August 2023, just one week after the company's incorporation on 16 August 2023.
This approval was given through a non-transparent process without any competitive bidding, raising significant concerns about the legitimacy and fairness of the arrangement.
Minority Caucus criticisms
After a preliminary review of the processes leading to this transaction, the Minority Caucus, in a statement issued by the leader, Dr. Cassiel Ato Forson, identified several issues they believe make the Next Gen Infraco 5G deal detrimental to national interests.
The Caucus's analysis indicated that the state could have generated between $400 million and $500 million upfront if the government had opted for a competitive process.
Instead, the government is offering this asset for a mere $125 million, payable in yearly instalments over ten years.
This decision, according to the Minority, deprives the country of much-needed revenue that could be used for critical development projects amid economic hardship.
The Minority stated that the transaction with Next Gen Infraco Limited, being a multi-year contract, requires parliamentary approval per section 33 of the Public Financial Management Act 2016 (Act 921).
The NDC Minority Caucus believes that, in a time of economic crisis, it is unconscionable for the government to hand over such a valuable asset to a shell company for a minimal amount.
They argued that the deal is against the national interest and have flagged the transaction for close scrutiny.
The Minority said the outcome of this scrutiny will have significant implications for the future of digital infrastructure and economic growth in Ghana.