Government Approves GH¢2.3 Billion to Restructure and Recapitalize NIB

Back to Business on The Move
Government Approves GH¢2.3 Billion to Restructure and Recapitalize NIB

Share this post

Government Approves GH¢2.3 Billion to Restructure and Recapitalize NIB

Government Approves GH¢2.3 Billion to Restructure and Recapitalize NIB

The government has announced the approval of GH¢2.3 billion toward the restructuring and recapitalisation of the National Investment Bank (NIB).

The first tranche of GH¢400 million is expected to be transferred to the bank before the end of May 2024.

Announcing the approval at the Ministry of Finance’s monthly briefing, Dr. Mohammed Amin Adam said the restructuring and recapitalisation process also include strengthening “the governance structure and operational efficiency, enhance supervision, and improve risk management to improve and sustain the financial viability of NIB.”

“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.”

The Minority Caucus in Parliament in September 2023 alleged that the government was scheming to sell the National Investment Bank to its cronies when it announced plans to either merge the bank with the Agricultural Development Bank or collapse.

“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,” Isaac Adongo said at a press briefing.

Source: Citinewsroom

Back to Business on The Move