Nothing about merger has come to us officially - NIB

National Investment Bank has ruled out any plan to merge with the Agricultural Development Bank (ADB).

“Nothing about a merger or otherwise has come to us officially,” Board Chairman of NIB, Togbe Afede said.

Speaking to JoyBusiness at the 55th-anniversary celebration of NIB, he said, “What we are aware of is the government’s desire to see NIB return to its core mandate which will mean supporting industry; supporting 1D1F so that our industrial sector can lead the growth of the Ghanaian economy.

We are doing our work with the sole objective of positioning NIB to be a strong bank that will fulfil its original mandate of helping to create industries as a way of promoting an industrial sector growth that will help the growth of the entire economy," he said.

 

Togbe Afede said, "We are not looking at what is being said on the airwaves but we are reacting to what we are aware of and pursuing our mandate without any destruction.”

He added, “All that we want to achieve this year is to meet the minimum requirement of Bank of Ghana and also put in place structures that will enable us to support industrial growth and partner the Ghanaian private sector.”

Confirmation

Earlier, the Finance Minister, Ken Ofori-Atta confirmed that government is working to merge Agricultural Development Bank (ADB) and National Investment Bank (NIB) in the creation of the National Development Bank.

Ken Ofori-Atta said with the two banks government is looking at using them to finance it’s industrialisation and Agric agenda.

The Minister in the 2018 budget disclosed that government was looking at merging these banks.

Mr Ofori Atta told JoyBusiness they have come very far with the plan.

“The thinking process is clear that we need a strong and vibrant and well-capitalised enterprise development bank. This is to be able to support the Agriculture and industrialisation drive,” he said.

The government currently holds a significant stake in ADB and NIB, making it easier, to go ahead with this plan.

However, there are some who are of the view that there could be some challenges looking at the fact the government no longer has a controlling stake in ADB.

The finance minister indicated that the state would raise, some $500 million to help recapitalized the Development Bank.

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