Serious questions are being raised about the financial judgment of the management of the Agriculture Development Bank (ADB) following revelations that the state-owned bank has been paying a monthly rent of $7,500 for a prime East Legon facility it has failed to occupy, four clear months after the tenancy officially took effect.
The lease agreement
Documents available show that in June 2025, ADB, under the leadership of its Managing Director, Edward Ato Sarpong, entered into a five-year tenancy agreement with KEDGE Company Ltd for a property located at No. 20 Lagos Avenue Road, East Legon, in the Greater Accra Region.
The agreement, signed on June 5, 2025, was executed on behalf of ADB by Mr. Sarpong and on behalf of KEDGE by its Managing Director, Alhaji Seidu Agongo.
$7,500 monthly rent
Under the terms of the agreement, ADB committed to paying rent at a rate of $7,500 per month for approximately 600 square metres of office space and ancillary facilities, with the stated purpose of the lease being banking operations.
$450,000 five years lease
Over the five-year lease period, the total rent commitment amounts to the cedi equivalent of $450,000.
The lease period was clearly defined to commence on August 1, 2025, and to terminate on July 31, 2030.
As part of the arrangement, ADB made an advance payment in June of the Ghana cedi equivalent of $100,000 to KEDGE Company Ltd as part-payment toward the first 24 months of the lease.
The agreement further requires the bank to pay an additional $80,000, in cedi equivalent, six months after the lease period began, bringing the total rent obligation for the initial two-year period to $180,000.
After the first two years, rent payments are to be made annually, with the landlord reserving the right to adjust the rent upward by up to five per cent after the expiration of the initial five-year period.
All payments are pegged to the prevailing interbank exchange rate on the day of payment, exposing the bank to further foreign exchange risk.
No renovation, no operations
The tenancy agreement also granted ADB a 60-day rent-free period starting from June 5, 2025, specifically to allow for renovation works to prepare the premises for occupation. However, despite this concession and the clear commencement date of August 1, checks conducted in December—four months after the lease officially took effect—show that ADB has yet to occupy the facility.
More troubling is the absence of any visible renovation or refurbishment works at the premises.
There are no signs of preparation for banking operations, no movement of staff, and no indication that the building is being readied for use.
Yet, since August, the $7,500 monthly rent obligation has been running, effectively meaning that $30,000 have been paid for an empty building.
Concerns amid financial strain
For a bank already under financial strain, this development raises serious concerns about waste and prioritisation.
The issue is compounded by the disclosure in the 2026 Budget Statement by Finance Minister Dr. Cassiel Ato Forson that government plans to recapitalise ADB to enable it meet the Bank of Ghana’s new minimum capital requirements before the end of 2025.
According to the minister, ADB and Consolidated Bank Ghana are expected to receive a combined recapitalisation of GH₵1 billion.
Questions over accountability and FX compliance
Against this backdrop, critics are questioning why a bank requiring state recapitalisation would commit scarce, foreign currency–denominated resources to a facility it does not use.
Why has ADB failed to occupy the East Legon building four months after the lease commenced?
Why was no renovation carried out during the 60-day rent-free period?
Additionally, why has the rent been denominated in US dollars, contrary to Bank of Ghana regulations on foreign exchange transactions in Ghana?
And were the board of ADB and the Bank of Ghana aware of, and comfortable with, this expenditure given the bank’s capital adequacy challenges?
Broader strategic questions
There are also broader strategic questions. At a time when financial technology is rapidly transforming banking—shifting services from physical branches to digital platforms where customers transact on mobile phones and other devices—is it prudent for ADB to be expanding its physical footprint?
