National Investment Bank (NIB) employees have outlined a series of challenges that have adversely affected the bank in recent years, leading to its current precarious state.
In an open letter, these employees have appealed to the government for assistance in recapitalizing the bank to prevent its potential collapse.
Among the issues raised, the workers mentioned various internal problems, including the impact of the Domestic Debt Exchange Programme, contributing to the bank’s current predicament.
They noted that the Bank of Ghana’s embargo on granting of loans for the past six (6) years is “practically depriving the bank of huge interest income and technically out of trade and business.”
“Secondly, a chunk of non-performing loans totaling over GHS2.1 billion granted to companies and individuals to execute government of Ghana projects. These companies and individuals have executed the projects, raised Interim Payment Certificates, and are yet to be paid by the government.
“Thirdly, the Bank’s investments in Government of Ghana bonds of GHS857,000.00 held up and affected by the Domestic Debt Exchange Program (DDEP) is also not helping matters,” parts of the statement read.
The staff further noted that despite these challenges, the Bank has performed “excellently well by increasing its deposit position from GHS3.2 billion in August 2022 to GHS5.1 billion in August 2023.”
“Deposit increases month on month and the target of a billion-year ending December 2023 is highly achievable. The goodwill from our loyal customers has been amazing as the bank opens over 2,000 new accounts every month. The bank’s nationwide customer cash collection service is second to none.
“Internal management staffing restructuring has been successful. The staff strength saw a reduction from 1700 in 2021 to a little over 900 in July 2023. There is still the edge for further downsizing to ensure efficiency and increase savings,” the statement said.
Workers are also calling with the government to reconsider its decision to transfer NIB operations to the Agricultural Development Department.