The government has made substantial progress in settling its debt to the Social Security and National Insurance Trust (SSNIT), clearing approximately GH₵2.5 billion of its GH₵5 billion arrears through bond issuance. This development was disclosed by SSNIT’s Director-General, Kofi Osafo-Maafo, during a stakeholder meeting in Kumasi. The debt, accumulated over a decade, is now being repaid after extensive negotiations between SSNIT and the government.
Mr. Osafo-Maafo noted that despite the challenges caused by the government’s arrears, SSNIT achieved a financial turnaround in 2023, recording a net surplus of GH₵864 million after facing deficits in previous years. He attributed this positive performance to improvements in contribution collections, investment income, and enhanced cost-efficiency measures.
To ease the financial burden on SSNIT, the government opted to settle half of its outstanding arrears using bonds. This allows SSNIT to receive the much-needed payments while the government manages its fiscal constraints. The GH₵2.5 billion settlement is expected to improve SSNIT’s cash flow and strengthen its ability to meet pension obligations.
Although this represents significant progress, the government still owes GH₵2.5 billion to SSNIT, and further negotiations are expected to address the remaining arrears in a manner that supports both the government’s fiscal policies and SSNIT’s financial stability.
The settlement highlights the government’s commitment to ensuring the long-term sustainability of SSNIT, a crucial pillar in Ghana’s social security system. Regular debt settlements are essential to maintaining confidence in the pension system and ensuring retirees receive their benefits on time. As discussions continue on the outstanding arrears, the government’s efforts are expected to further enhance SSNIT’s liquidity and operational capacity, ensuring its ability to meet its obligations to pensioners.
