The Ghanaian government has announced the approval of GH¢2.3 billion for the restructuring and recapitalization of the National Investment Bank (NIB).
This substantial equity injection will be implemented over the next 12 months, with the first tranche of GH¢400 million expected to be transferred to the bank by the end of this month.
The decision follows Cabinet approval of the restructuring and recapitalization plan for NIB.
Finance Minister Dr. Mohammed Amin Adam revealed this in Accra development during the Finance Ministry’s monthly briefing.
He stated that the restructuring and recapitalization process aims to strengthen the bank’s governance structure, enhance operational efficiency, improve supervision, and bolster risk management to ensure NIB’s financial viability.
Last audited financial report in 2015
The last audited financial report from NIB was published in 2015,
GH¢2.1bn bad debts
The bank currently has approximately GH¢2.1 billion in bad debts.
BoG owns 44.06% stake in NIB
NIB is entirely government-owned, with the Bank of Ghana (BoG) holding a 44.06% stake and the remaining 55.04% held by the Finance Ministry.
BoG seeks out in 2016
In October 2016, BoG announced plans to renounce its ownership.
2024 budget provision for NIB
In the 2024 budget, a provision of GH¢4 billion has been made to address issues related to NIB, distressed Specialized Deposit-taking Institutions (SDIs), and other legacy challenges in the financial sector.
As part of the International Monetary Fund (IMF) programme, BoG has committed to completing the remaining tasks from the financial sector cleanup, which includes addressing NIB’s insolvency.
Established in 1963
Established in 1963 as Ghana’s first development bank, NIB was created to promote rapid industrialization across various sectors of the Ghanaian economy.
The bank has since undergone several management, institutional, and financial restructurings to strengthen its status as a world-class institution focused on development and commercial banking activities.
With over 52 branches and agencies nationwide, including at least one branch in every regional administrative capital, NIB continues to be a significant financial force behind major developmental projects in manufacturing, mining, energy, trade, and export businesses in Ghana.
