The Government of Ghana has sanctioned a significant financial boost for the National Investment Bank (NIB), approving GH¢2.3 billion towards its restructuring and recapitalization.
This initiative aims to revitalize the bank’s operations and ensure its long-term financial viability.
Finance Minister Dr. Mohammed Amin Adam announced the approval during the Ministry of Finance’s monthly briefing.
He disclosed that the first tranche of GH¢400 million is slated to be transferred to the bank before the end of May 2024.
“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,” Dr. Amin Adam stated.
The Finance Minister detailed the comprehensive plan for NIB, which includes strengthening its governance structure and operational efficiency.
“The plan also includes measures to strengthen the governance structure and operational efficiency, enhance supervision, and improve risk management to improve and sustain the financial viability of NIB,” he elaborated.
This move comes amidst previous allegations from the Minority Caucus in Parliament, who in September 2023 accused the government of attempting to sell NIB to its cronies under the guise of restructuring.
The Caucus had raised concerns following announcements of potential plans to either merge NIB with the Agricultural Development Bank (ADB) or dissolve it.
“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 ADB for themselves in a state capture,” asserted Isaac Adongo, a prominent member of the Minority Caucus, during a press briefing.
Despite these allegations, the government maintains that the restructuring and recapitalization efforts are in the best interest of NIB and the broader financial sector.
The initiative is part of the broader Post-COVID-19 Programme for Economic Growth (PC-PEG), which seeks to stabilize and enhance the country’s economic landscape.
The approval of the GH¢2.3 billion funding is a strategic move to restore confidence in NIB’s operations, ensuring it remains a key player in Ghana’s banking sector.
The injection of capital and the accompanying reforms are expected to fortify NIB’s position, enabling it to better serve its customers and contribute to national economic growth.
The restructuring plan signifies the government's commitment to bolstering financial institutions and underscores its broader efforts to promote economic stability and growth.
Story by: Joshua Kwabena Smith
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