NIB Renews Strategic Partnership with Ministry of Roads and Highways

The Managing Director of National Investment Bank PLC (NIB), Chief Dr. Doliwura Zakaria, on Monday, April 7, 2025, paid a courtesy call on the Minister for Roads and Highways, Hon. Kwame Governs Agbodza. The meeting centered on strengthening the bank’s relationship with the Ministry and offering financial solutions to support ongoing infrastructure projects across the country.

The Minister emphasized the pivotal role NIB plays in national development, especially in funding infrastructure projects and supporting local contractors. Reflecting on the past, he noted that if government had consistently supported NIB, the bank would not have faced the liquidity challenges that nearly led to its liquidation. “Instead of setting up a new bank,” he said, “we should focus on strengthening NIB to perform the role it was originally established for.” 

Addressing the sector’s ongoing challenges, the Minister disclosed a significant debt burden of GHS 21 billion owed to contractors for completed and ongoing projects. He lamented the lack of recognition for certificates issued to contractors, which reduces their financial viability. To this end, he proposed that NIB design a financing package to support the final 20% completion of projects already 80% complete, to ensure value is delivered to the state.

In response, Chief Dr. Zakaria expressed appreciation for the Minister’s confidence and reiterated NIB’s commitment to being the financial engine behind government-led projects. He disclosed that the bank is currently dealing with GHS 1.6 billion in non-performing loans, many involving road contractors. As part of efforts to recover these funds and strengthen the bank’s portfolio, he announced plans to offer advisory services to contractors, help them restructure repayment plans, and reduce interest rates where feasible.

“Our approach is not solely about profit,” Chief Dr. Zakaria stated, “but about achieving sustainability, supporting industrialization, and aligning with the government’s 24-hour economy agenda.”

He urged the Minister to encourage contractors who are in default to engage the bank and resolve outstanding obligations before legal or recovery actions are taken. As a state-owned bank, he stressed, NIB exists to support the government and the Ghanaian people.

The Minister agreed, noting that high interest rates over the years have worsened contractors’ debt burdens. He endorsed the idea of contractor-bank engagement sessions and confirmed the government’s intention to settle some contractor payments through the Ghana Infrastructure Investment Fund (ADFA).

The meeting also touched on the Ministry’s plans to digitize road toll collection through a new IT platform, including a mobile app integrated with mobile money and Ghana Card payments. The Minister hinted at potential collaboration with local governments and technical service providers, with NIB positioned to play a key role in this digital transformation.

In closing, both parties expressed mutual appreciation for the dialogue and agreed to maintain close communication in the coming months to operationalize the ideas discussed.