NIB needs fresh capital injection – Annoh-Dompreh

Majority Chief Whip and Member of Parliament (MP) for Nsawam/Adoagyiri, Frank Annoh-Dompreh, has called for immediate steps to recapitalise the National Investment Bank (NIB), a state-owned lender.

This, he said, has become necessary due to liquidity challenges faced by the bank which has been worsened by the challenges in the financial sector.

Addressing the media in Parliament on Wednesday, October 25, 2023, Mr. Annoh-Dompreh said: “What the government should be encouraged and urged to do is to help in the recapitalization but not to run down the bank. One of the first calls which we will support is to encourage the finance minister to help in pushing more capital to the bank,” he noted.

He lauded government for its efforts at supporting the bank in the past years, while emphasising the need for more support.

He noted that in 2019, the finance minister obtained parliamentary approval for GH¢2.2 billion as sovereign guarantee in favour of Ghana Amalgamated Trust (GAT) to recapitalise NIB. Additionally, Mr. Ofori-Atta led the efforts to raise GH¢857 million for NIB to support its operations.

“I think the government has put in some good effort but it stands to reason that because of the challenges in the financial sector, the bank is still demanding some recapitalisation – oxygen – so that it will begin to work and remain relevant,” Mr. Annoh-Dompreh added.

His remarks come amid accusations by the Minority in Parliament that the Akufo-Addo-led government and the Bank of Ghana (BoG) are allegedly plotting to sell the NIB to the Agricultural Development Bank (ADB).

But the MP refuted the claim, assuring the general public that the bank is not for sale. He also urged his colleagues in the Minority to desist from such speculations as they undermine the integrity of the instutition.

“So, our colleagues in the Minority should stop this politicization of all matters, especially matters related to the financial sector.

“The way and manner our colleagues on the opposite side go to the market with issues of national importance without any facts should be a concern to all. If they don’t have the facts, they should just be patient, investigate, and get the facts before they come out,” the Nsawam/Adoagyiri legislator cautioned.