The Driver and Vehicle Licensing Authority (DVLA) has significantly reduced the cost of its roadworthy service-level agreement (SLA) following a major renegotiation led by its Chief Executive, Julius Neequaye Kotey.

The previous agreement, signed under the New Patriotic Party (NPP) administration, was valued at approximately $51.8 million annually. This locked the Authority into a three-year contract totaling about $155.4 million.

However, under the current National Democratic Congress (NDC) administration, the DVLA successfully renegotiated the deal, reducing the total cost to just GH¢2 million over the same three-year period.

The new agreement represents a substantial shift in fiscal policy, moving away from a high-value foreign currency obligation to a significantly lower, locally denominated commitment.

Speaking on Citizen on Accra 100.5 FM with Nana Bobie Ansah, Mr Kotey explained that the renegotiation was part of broader efforts to ensure value for money and improve efficiency within the Authority.

The development marks one of the most notable cost-saving interventions in the sector, with analysts pointing to its potential impact on public sector financial management and accountability.