Government injects GH¢450 million into National Investment Bank to restore profitability, sustainability – Ato Forson
The government has injected GH¢450 million into the National Investment Bank (NIB) as part of a broader recapitalization effort aimed at restoring the bank's profitability and sustainability, Finance Minister, Dr Cassiel Ato Forson has stated.
He made this announcement during the presentation of the 2025 Mid-Year Budget in Parliament on Thursday, July 24, 2025.
Dr Ato Forson mentioned that the NIB was left in a severely distressed state by the previous administration, with a capital adequacy ratio of -53.13 per cent as of June 2024.
However to turn things around, the government:
Injected GH¢450 million in cash
Issued GH¢1.5 billion in bonds to the bank
Transferred GH¢500 million worth of Government shares in Nestlé Ghana Ltd. to NIB
These measures, he said improved the bank’s capital adequacy ratio to +23 per cent by May 2025, preserved GH¢6.4 billion in depositor funds, saved over 900 jobs, and stabilized one of Ghana’s key indigenous banks.
Read his statement on NIB below:
Mr Speaker, you may recall that I updated this house during the 2025 budget presentation on the restructuring and recapitalization of the National Investment Bank, our NIB, as one of the critical reforms in the financial sector that should have been delivered in 2024. Unfortunately,
Mr Speaker, after spending a whopping 30.3 billion in the so-called financial sector cleanup exercise, the previous NPP administration left NIB in dire straits, with a capital adequacy ratio of a negative 53.13 per cent by end of June 2024.
Mr Speaker, we have successfully, Right Honorable Speaker, President Mahama and the NDC have successfully recapitalized the National Investment Bank by implementing an ambitious and credible plan to return NIB to profitability and sustainability.
Mr Speaker, we have taken the following steps. Right Honorable Speaker, we have injected a total cash of 450 million Ghana cedis. Mr. Speaker, we also issued remarkable bonds with face value of 1.5 billion Ghana cedis to the National Investment Bank.
Mr Speaker, we transferred 500 million Government of Ghana shares in the Nestle Ghana Limited to the National Investment Bank. Right Honorable Speaker, these transfers have significantly improved the capital adequacy ratio from negative 53.13% at the end of December 2024 to a positive 23 per cent in May 2025. Mr. Speaker, by taking these major steps, we have preserved depositors fund valued at 6.4 billion Ghana cedis.
We have also saved over 900 direct jobs at the National Investment Bank. Mr. Speaker, we have preserved an indigenous Ghanaian bank. Mr Speaker, let me say this.
Unlike the previous administration, we choose to spend to save a bank than spend to collapse a bank. Right Honorable Speaker, we have also prepared a forward-looking overarching restructuring plan for the National Investment Bank to put the bank on a sustainable path of profitability.
The plan also aims to enhance board independence and objectivity, strengthen risk management, promote accountability and transparency, prevent insider dominance and improve strategic decision-making.
Mr Speaker, this plan will, among others, strengthen corporate governance framework and systems, improve enterprise risk management and controls, establish a modern business model, revamp operational strategies, improve financial performance, institute and enhance supervisory measures, and eventually we will list the NIB on the Ghana Stock Exchange.
Right Honorable Speaker, NIB now has a total paid-up capital of 3.4 billion Ghana cedis and a capital adequacy ratio of 23 per cent.
Mr Speaker, on behalf of the President, I want to use this opportunity to assure the people of Ghana and depositors that our indigenous bank, the National Investment Bank, is now primed for business.
More importantly, Mr. Speaker, NIB is back. NIB is now liquid. NIB is now safe.
