DVLA renegotiates roadworthiness contract, projects $50m in annual savings

The Driver and Vehicle Licensing Authority (DVLA) has renegotiated the terms of its service-level agreement (SLA) for roadworthiness certificates, reducing the cost from an estimated $155.4 million over three years to GH¢2 million for the 2026-2028 period, according to the authority's Chief Executive Officer, Julius Neequaye Kotey.

Speaking at the Government Accountability Series on Monday, October 12, 2026, Kotey explained that the previous agreement covering 2023 to 2025 was projected to cost $51.8 million annually, totaling $155.4 million over the three years. The authority conducted a review of the arrangement, leading to a renegotiation that resulted in the current agreement valued at GH¢2 million for the three-year span from 2026 to 2028.

Kotey noted that this change translates to annual savings of approximately $50 million, reducing the previous annual cost of $51.8 million to the new cost of 2 million Ghana cedis for the three years. The CEO emphasized the significant financial impact of the renegotiation, stating that it would save the DVLA about $50 million each year.

However, the details surrounding the figures, including the disparity in currency denominations between the previous agreement in US dollars and the revised cost in Ghana cedis, as well as the methodology behind the projected annual savings, remain unclear, with further clarification needed on these aspects of the renegotiated agreement.