When Finance Minister Dr. Cassiel Ato Forson defended a fresh GH¢1.4 billion bailout for the National Investment Bank (NIB) on July 10, he tried to close the chapter on nearly two decades of failed interventions. Swearing in a new nine-member board the day before, chaired by respected former CalBank CEO Frank Adu Jnr, Forson promised that, this time, NIB would be allowed to “operate with independence and professionalism.”
A Long History of Failure
NIB’s decline predates the 2017–18 financial sector clean-up. It began in the mid-2000s, when the Bank of Ghana raised minimum capital requirements from GH¢60 million to GH¢120 million, and later GH¢400 million by 2018. NIB, burdened with politically directed loans, was unable to raise the capital or clean its balance sheet fast enough.
A 2010 attempt to offload GH¢208 million in bad loans gave brief relief, but without new equity, defaults piled up again. While other banks raised funds, such as ADB’s GH¢326 million IPO in 2016, NIB stayed sidelined, surviving on regulatory forbearance and state backing.
The state later injected support through the Ghana Amalgamated Trust (GAT) with a GH¢2 billion sovereign guarantee in 2019. ADB used its GH¢127 million portion to meet the new capital bar. NIB, however, failed to finalise its transaction.
COVID-19 and the domestic debt exchange further strained its already fragile position. By 2023, rumours of a forced merger with ADB surfaced in Parliament, prompting a political backlash that shelved the plan.
A Fresh Bailout, a New Approach
Instead of a merger, the government approved a stand-alone rescue plan worth GH¢2.3 billion, to be disbursed over 12 months starting May 2024. The first GH¢400 million landed that month. By July 2025, GH¢1.4 billion had been spent, with another GH¢800–900 million budgeted. The IMF, under its second programme review, demanded a full diagnostic and turnaround plan by April 2025.
ADB and CBG, still state-owned, are next in line for recapitalisation in 2026.
Why Frank Adu?
Frank Adu Jnr is one of the most experienced bankers in Ghana. At CalBank, he drove sustained asset growth, digitisation, and low loan losses. His appointment to NIB’s board is widely seen as a signal that the government is serious about reform this time.
Forson’s pledge of “professional autonomy” is political code. Our guess is that, Adu is expected to impose stricter lending standards, enforce risk controls, and cut costs even when it means saying no to politically connected clients. The question is whether the board will be given the backing to follow through.
Old Risks, New Stakes
The challenges are unchanged. NIB’s legacy of politically motivated lending remains its biggest risk. Adu must resist pressure from influential borrowers and prove that the board can operate without interference.
The GH¢2.3 billion injection, while large, is mostly a replacement for past losses. With non-performing loans still above 20%, another economic shock could undo the entire effort.
Meanwhile, NIB’s original mission to fund industrial growth is largely dormant. Its deposit base is weak, and its project appraisal skills are outdated. Adu will probably focus on long-term capital for sectors like agribusiness, manufacturing supply chains, and renewable energy, tapping the Development Bank of Ghana for funding. But that pivot will require more than capital, it needs modern systems, skilled staff, and risk-sharing mechanisms that don’t yet exist.
So What?
Ghana has already spent nearly GH¢30 billion bailing out banks since 2018. Forson argues that letting NIB collapse would harm depositors, disrupt credit to key sectors, and rattle confidence during a sensitive phase of the IMF programme.
But public patience is wearing thin. Another recapitalisation that fails to fix the core issues would reinforce NIB’s reputation as the problem child of Ghana’s financial sector.
The next 18 months are a test. If Adu can cut political interference, restore credit discipline, and reposition NIB with a clear development mandate, the bank may finally shake its troubled legacy. If not, the bailout risks becoming another costly misfire.
For now, the capital is in. The board is in place. The spotlight is on Ridge Towers.
