The government has announced the allocation of GH¢2.3 billion for the restructuring and recapitalization of the National Investment Bank (NIB).
The initial tranche of GH¢400 million is set to be transferred to the bank by the end of May 2024.
During the Ministry of Finance’s monthly briefing, Dr. Mohammed Amin Adam outlined that the restructuring and recapitalization efforts would include enhancing “the governance structure and operational efficiency, enhance supervision, and improve risk management to improve and sustain the financial viability of NIB.”
He stated, “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.”
“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 added.
In contrast, the Minority Caucus in Parliament raised concerns in September 2023, alleging that the government’s plans might lead to the National Investment Bank being sold to insiders under the guise of merging it with the Agricultural Development Bank or collapsing it.
Isaac Adongo expressed these concerns at a press briefing, stating, “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.”
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