The government has completed an ambitious and far-reaching recapitalisation of the National Investment Bank (NIB), injecting over GH¢2.45 billion in financial support to restore the development-focused bank to profitability and long-term sustainability.
The measures, announced by Finance Minister Dr. Cassiel Ato Forson during the 2025 Mid-Year Budget Review in Parliament, have already begun yielding tangible results, with NIB posting a profit for the first time in nearly a decade.
The recapitalisation initiative, described by Dr. Forson as both “ambitious and credible,” involved a multi-pronged approach aimed at rescuing the bank from collapse, preserving depositor funds, and reviving public confidence in one of Ghana’s few remaining indigenous financial institutions.
Comprehensive Recapitalisation Anchors Recovery
At the core of the revival was a financial lifeline that included a direct cash injection of GH¢450 million from the government, the issuance of marketable bonds valued at GH¢1.5 billion, and the transfer of GH¢500 million worth of Government of Ghana shares in Nestlé Ghana Ltd to the bank’s balance sheet.
These decisive measures have transformed the financial standing of NIB.
As a result of these interventions, the bank’s Capital Adequacy Ratio (CAR) — which stood at a perilous negative 53.13% at the end of 2024 — surged to a positive 23 per cent by May 2025.
now holds a total paid-up capital of GH¢3.4 billion, giving it the resilience and liquidity needed to withstand market shocks and pursue growth.
The recapitalisation also preserved depositor funds totalling GH¢6.4 billion and protected over 900 jobs, according to Dr. Forson, who emphasised that the intervention helped “preserve a truly Ghanaian bank” at a critical time.
Restructuring plan to cement long-term stability
Beyond the immediate financial support, the government has implemented a Forward-Looking Overarching Restructuring Plan to guide NIB onto a sustainable path of profitability and strategic relevance.
plan, which is being coordinated by the Ministry of Finance in collaboration with the bank’s management and relevant regulators, focuses on improving governance, financial discipline, and operational efficiency.
Key reforms under this plan include efforts to enhance the independence and objectivity of the board, eliminate insider dominance, and improve accountability and transparency across all levels of the institution.
The plan also aims to strengthen the corporate governance framework, tighten enterprise risk management systems, and revamp the bank’s overall operational strategy.
A central long-term objective of the restructuring is to prepare NIB for listing on the Ghana Stock Exchange, thereby deepening public ownership and oversight.
Dr. Forson told Parliament that the plan reflects the government’s commitment to transforming the bank into a modern, competitive institution that can support Ghana’s industrial and infrastructure agenda.
“This is not a bailout. It is a national investment in an institution that must work for the Ghanaian people,” he said.
Strong financial results signal return to viability
The impact of the recapitalisation and restructuring is already visible in NIB’s mid-year financial performance.
For the six months ending June 30, 2025, the bank recorded a profit before tax of GH¢74.38 million — a significant reversal from the GH¢44.79 million loss recorded in the same period last year.
These unaudited results are the first the bank has published since 2016, signalling renewed confidence, transparency, and operational stability.
According to management, the recovery has been driven by improved operational efficiency, strict cost discipline, and a focused capital recovery strategy.
NIB’s total assets now stand at GH¢8.55 billion, up from GH¢5.71 billion in June 2024. Net operating income reached GH¢326.28 million in the first half of the year, supported by rising customer confidence and an expansion in deposits, which climbed to GH¢7.3 billion.
The bank’s capital adequacy ratio has further strengthened to 41.34 per cent, significantly above the regulatory minimum.
Even more telling is the transformation in equity position — from a deficit of GH¢1.01 billion in mid-2024 to a surplus of GH¢892.27 million today.
NIB’s turnaround has restored solvency and reaffirmed its capacity to lend, invest, and serve as a development finance vehicle for Ghana’s industrial and private sector transformation.
A model for public sector reform
The successful recapitalisation and recovery of NIB could serve as a case study for the reform of state-owned financial institutions across Africa.
Once plagued by weak governance, undercapitalization, and operational inefficiencies, the bank is now back on the path of profitability and reform, with systems in place to ensure future sustainability.
With renewed investor confidence and stronger regulatory oversight, the government is optimistic that NIB will not only return to its development finance roots but also emerge as a competitive force in Ghana’s banking landscape.
Dr. Forson emphasised that the restructuring process is ongoing and will require continued diligence from all stakeholders. “We have done the heavy lifting,” he said.
“Now, we must ensure that the systems we’ve put in place continue to work — to protect the bank, its workers, depositors, and the Ghanaian taxpayer.”
