Finance Minister Dr. Cassiel Ato Forson delivered a pointed critique of the previous New Patriotic Party (NPP) administration’s handling of the financial sector, juxtaposing their approach with the Mahama government’s successful rescue of the National Investment Bank (NIB). Dr. Forson, speaking during the 2025 Mid-Year Budget Review, emphasized the government’s commitment to preserving indigenous institutions and safeguarding depositors’ funds, contrasting it with the NPP’s strategy that resulted in the collapse of several financial institutions. He highlighted the Mahama administration’s proactive intervention in NIB, characterizing it as a deliberate effort to “spend to save a bank” rather than “spend to collapse a bank.”

The Finance Minister detailed the comprehensive rescue plan implemented to revitalize NIB, which involved a multi-pronged approach to recapitalize the institution. This included a direct capital injection of GH¢450 million, providing immediate financial stability to the ailing bank. Further bolstering NIB’s capital base was the issuance of GH¢1.5 billion in re-marketable bonds, allowing the bank to access additional funding and strengthen its financial position. Finally, the government transferred GH¢500 million worth of its shares in Nestlé Ghana Limited to NIB, further enhancing the bank’s asset base and providing a stable source of income. This strategic combination of measures was designed to address the bank’s underlying financial weaknesses and position it for long-term viability.

Dr. Forson underscored the positive outcomes of this intervention, highlighting the significant improvement in NIB’s capital adequacy ratio. From a precarious -51.13% in December 2024, the ratio had rebounded to a healthy 23% by May 2025, demonstrating the effectiveness of the government’s strategy. He emphasized that these decisive actions not only preserved GH¢6.4 billion in depositors’ funds but also saved over 900 direct jobs at NIB, underscoring the government’s commitment to both financial stability and employment preservation. The successful rescue of NIB served as a testament to the government’s proactive approach to financial sector management and its commitment to protecting indigenous institutions.

The Finance Minister reassured the public that NIB was not only stabilized but had regained full operational strength and liquidity. He declared NIB “prime for business,” emphasizing its restored financial health and encouraging renewed confidence in the institution. The bank’s return to liquidity and solvency, he asserted, marked a significant milestone in the government’s efforts to restore stability and confidence in the financial sector. This revitalization of NIB stood in stark contrast to the bank collapses witnessed under the previous administration, reinforcing the current government’s narrative of responsible financial management.

Dr. Forson’s presentation of the NIB rescue plan served as a direct challenge to the legacy of the previous NPP government’s financial sector clean-up exercise. The NPP’s approach, which resulted in numerous bank collapses and significant job losses, was implicitly criticized as a costly and disruptive process. In contrast, the Mahama administration presented its handling of the NIB crisis as a more prudent and effective approach, prioritizing the preservation of indigenous institutions and the protection of depositors’ funds. This contrasting narrative framed the current government’s actions as a responsible alternative to the previous administration’s controversial policies.

The Mahama government’s strategy with NIB reflects a broader philosophy of fiscal responsibility, prioritizing national ownership, and institutional preservation. The rescue of NIB, according to the government’s narrative, demonstrates a commitment to safeguarding Ghana’s financial sector and protecting the interests of its citizens. This stands in contrast to the previous administration’s approach, which was perceived by some as overly aggressive and detrimental to the long-term health of the financial sector. By highlighting the successful revitalization of NIB, the government aimed to showcase its commitment to a more sustainable and inclusive approach to financial sector management.

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