Government approves GHS 2.3 billion for National Investment Bank recapitalization
The government of Ghana has approved a substantial financial package aimed at restructuring and recapitalizing the National Investment Bank (NIB).
The total approved amount is GH¢2.3 billion, with the first installment of GH¢400 million expected to be disbursed by the end of May 2024.
This decision was announced by Dr. Mohammed Amin Adam during the Ministry of Finance’s monthly briefing.
“Ladies and gentlemen, as part of the implementation of the PC-PEG, the Cabinet has approved the plan for restructuring and recapitalization of the National Investment Bank (NIB). This will involve a programmed equity injection of about GH¢2.3 billion over the next 12 months, with the first tranche of GH¢400 million expected to be transferred to NIB before the end of this month,” he averred.
The restructuring and recapitalization initiative is part of a broader strategy under the government’s Post-COVID-19 Economic Growth Program (PC-PEG).
The plan involves a comprehensive approach to strengthen NIB’s governance, operational efficiency, supervision, and risk management to ensure the bank’s long-term financial stability.
Dr. Adam emphasized that these measures are crucial for sustaining NIB’s viability and its role in the economy.
The Minority Caucus in Parliament in September 2023 alleged that the government was scheming to sell the National Investment Bank to its cronies when it announced plans to either merge the bank with the Agricultural Development Bank or collapse it.
Isaac Adongo, speaking on behalf of the Minority Caucus, criticized the government’s plan, suggesting it was an attempt to state capture rather than a genuine effort to revitalize the bank.
“It is clear that this is not about the interest of NIB. This is the last step towards passing through the back door to acquire NIB and ABD for themselves in a state capture,” he quipped.
The restructuring and recapitalization of NIB are critical steps for the bank’s future, aiming to enhance its capacity to support economic growth. The controversy surrounding the government’s intentions, however, highlights the political and public scrutiny over how state-owned financial institutions are managed and reformed.
