The government has approved GH¢2.3 billion for 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 by the end of May 2024.

Announcing the approval during the Ministry of Finance’s monthly briefing, Finance Minister Dr. Mohammed Amin Adam outlined the comprehensive plan aimed at revitalising the NIB.

"The restructuring and recapitalization process will involve strengthening the governance structure, enhancing operational efficiency, improving supervision, and bolstering risk management to ensure the bank's financial viability," he stated.

“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,” Dr. Amin Adam said.

The Finance Minister emphasised that the measures aim to improve and sustain the financial health of NIB. "The plan includes strengthening the governance structure and operational efficiency, enhancing supervision, and improving risk management to ensure the financial viability of NIB," he added.

However, the Minority Caucus in Parliament has raised concerns about the government’s intentions. In September 2023, they alleged that the government was planning to sell the National Investment Bank to its cronies under the guise of restructuring.

The announcement of plans to either merge the bank with the Agricultural Development Bank (ADB) or collapse it sparked further controversy.

"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 ADB for themselves in a state capture," stated Isaac Adongo, a member of the Minority Caucus, at a press briefing.