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National Investment Bank

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This article is about the bank of Ghana. For the bank of Ethiopia, see Nib International Bank. For Pakistan, see NIB Bank.
National Investment Bank Ghana Limited
Company typePrivate company, Parastatal
IndustryFinancial services
Founded1963; 61 years ago (1963)
Headquarters
Accra
,
Ghana
Number of locations
52 branches
Key people
Michael Ayesu
Ag. Board Chairman
Samuel Sarpong
Managing Director[1][2]
ProductsLoans, Savings, Checking, Investments, Debit Cards, Credit Cards, Mortgages
RevenueIncrease:Aftertax:US$4 million (GHS:7.5 million) (2011)[3]
Total assetsUS$468.5+ million (GHS:878.9 million) (2011)
Websitewww.nib-ghana.com

National Investment Bank, normally abbreviated to NIB, is a state owned commercial bank in Ghana. It is one of the commercial banks licensed by the Bank of Ghana, the national banking regulator.[4] NIB was form to promote industrialization of all sectors in the country. It has undergone management and financial restructure to help it attain higher financial levels across the world.[5]

NIB is a medium-sized financial services provider in Ghana. As of December 2011, the total valuation of the bank's assets was approximately US$468.5 million (GHS:878.9 million), with shareholders' equity of approximately US$47 million (GHS:88.1 million).[6]

Mission

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The bank mission is to be the best in customer relationship and satisfaction, and also to create the best value for their share holders.[7]

History

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The origins of the bank's history can be traced back to the aftermath of the Second World War (WWII). During this period, there were agitations among the indigenous population due to the influx of foreign imports. In response to these concerns, a widespread boycott was organized by the local community, led by the Association of West African Merchants (AWAM).[8] Recognizing the need to address these issues and promote the involvement of private indigenous individuals in the business sector, the colonial administration took significant steps.[9]

As a result, the Gold Coast Industrial Development Corporation (GCIDC) was established in 1952, with allocated budgetary resources to provide financial support to indigenous entrepreneurs for the establishment of their businesses.[8]

The GCIDC played a pivotal role in fostering entrepreneurship among the indigenous population, particularly in sectors such as furniture making and baking. This intervention not only supported local businesses but also enhanced the skills of carpenters and bakers by introducing mechanized sawmills and electric bakeries.[10] The GCIDC also modernized laundry activities, which had traditionally been manual. This was particularly significant as it addressed the practice of the Gold Coast intelligentsia, who were sending their suits to the United Kingdom for laundering.

The enactment of the Act provided the framework for the National Investment Bank (NIB) to embark on joint ventures. This was in response to the financial constraints faced by Ghanaian manufacturers and the private sector in initiating startup ventures. NIB, with its capacity to provide loans and equity, initiated over 100 joint enterprises, including some regional development corporations that are no longer operational. Notably, major industries such as Nestle Ghana Limited, Novotel (now known as the Accra City Hotel), Kabel Metal (now Nexans Kabelmetal), and Aluworks significantly benefited from equity participation and financial support.[8]

In 2021, the government entrusted NIB Bank with a vital mission: to establish Ghana as the industrial hub of Africa. Hon Ken Ofori-Atta, in a statement to the NIB, encouraged the bank's Board of Directors to put in the effort needed to transform the bank into a profitable national asset. It's worth noting that in 2020, the bank received a significant infusion of GHC 800 million to bolster its capital position.[11] However, NIB could not meet its objective.[12]

In July 2023, the bank underwent a comprehensive review to evaluate its sustainability as a state-owned financial institution. Dr. Ernest Addison highlighted that the bank, along with several other financial institutions, grappled with the challenge of being under-capitalized. This issue was part of the broader financial sector cleanup carried out in 2022.[13][14][15]


The Government of Ghana contemplated a strategic move, suggesting that ADB might assume control of NIB to initiate a restructuring process. This decision arose from NIB's ongoing struggle to achieve profitability, leading to the realization that the government couldn't sustainably fund the bank any longer.[16]

The decision has faced criticism from the minority group in parliament. They argue that since the Government already holds a majority stake of over 60% in ADB, the move to have ADB take over NIB raises concerns and questions about the practicality of the decision.[17][18]

Branch network

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As of September 2017, the bank maintains a network of 52 branches [19]

Products

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1. Retail banking 2. SME banking 3. Corporate banking 4. Digital banking 5. Treasury service and investments 6. International trade and payments.[20]

See also

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References

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  1. ^ "Ghana: NIB Declares Profit Again". Public Agenda (Accra). 2012-05-15. Retrieved 2017-08-17.
  2. ^ "The Board of Directors At National Investment Bank". Archived from the original on 2012-03-17. Retrieved 2012-05-15.
  3. ^ December 2011 Aftertax Profit
  4. ^ List of Licensed Commercial Banks In Ghana
  5. ^ https://siga.gov.gh/sector/national-investment-bank/ [bare URL]
  6. ^ "Ghana: NIB Declares Profit Again". Public Agenda (Accra). 2012-05-15. Retrieved 2017-08-17.
  7. ^ https://www.nib-ghana.com/ [bare URL]
  8. ^ a b c "About Us". Retrieved 2023-10-14.
  9. ^ "National Investment Bank". SIGA: State Interests and Governance Authority. Retrieved 2023-10-14.
  10. ^ "National Investment Bank Ltd". BusinessGhana. Retrieved 2023-10-14.
  11. ^ "National Investment Bank Board Inaugurated | Ministry of Finance | Ghana". mofep.gov.gh. Retrieved 2023-09-28.
  12. ^ "BoG, government in talks to assess viability of state-owned National Investment Bank - Governor". GhanaWeb. 2023-07-25. Retrieved 2023-09-28.
  13. ^ "Banking sector clean-up: The different costs revealed by government". GhanaWeb. 2022-04-12. Retrieved 2023-09-28.
  14. ^ "Ghana's banking sector clean-up has created a more sustainable industry - Africa 2020 - Oxford Business Group". 2020-02-20. Retrieved 2023-09-28.
  15. ^ "Request For Expressions of Interest - (GH-MOF-FSD-315018-CS-INDV) | Ministry of Finance | Ghana". mofep.gov.gh. Retrieved 2023-09-28.
  16. ^ "Government considers takeover of NIB by ADB - MyJoyOnline.com". www.myjoyonline.com. 2023-09-05. Retrieved 2023-09-28.
  17. ^ "Minority kicks against handing over NIB to ADB over liquidity challenges". GhanaWeb. 2023-09-28. Retrieved 2023-09-28.
  18. ^ "Government wants to sell NIB and ADB to cronies - Minority fights proposed merger - MyJoyOnline.com". www.myjoyonline.com. 2023-09-28. Retrieved 2023-09-28.
  19. ^ "Branches of National Investment Bank". Archived from the original on 2010-07-25. Retrieved 2011-02-28.
  20. ^ .https://www.nib-ghana.com/
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