Parliamentary Dispute Deepens Over Bank of Ghana’s GH¢15.6bn Loss and Allegations of ‘Policy Insolvency’

Ghana's Parliament has become the epicenter of a heated debate following the release of the Bank of Ghana’s (BoG) 2025 audited financial statements, which revealed a GH¢15.6 billion loss and a widening negative equity position of approximately GH¢93.8 billion. While the central bank and the Majority caucus frame these figures as the necessary "cost of stabilization" in a volatile macroeconomic environment, the Minority caucus has launched a scathing critique, alleging "policy insolvency" and the deliberate concealment of a much larger financial crisis. The clash highlights deep divisions over the central bank's mandate, its accounting practices, and its independence from political interference.

The Minority caucus, led by Ranking Member Kojo Oppong Nkrumah, has accused the BoG of underreporting its true losses, which they claim could be as high as GH¢44 billion when adjusting for what they describe as "misleading" accounting of gold transactions. According to the Minority, a GH¢9.6 billion one-off gain from gold sales was used to artificially buffer the bank’s operational income, masking an underlying deficit. They argue that the bank’s current financial state represents a "policy insolvency" that has led to increased interest payments to commercial banks, reduced credit for the private sector, and a disconnect between reported macroeconomic improvements and the rising cost of living for Ghanaians.

In a robust defense, the Majority caucus, represented by Sagnarigu MP Atta Issah, has rejected these claims, asserting that the Minority is misinterpreting standard central banking operations. The Majority argues that the GH¢15.6 billion loss is a direct result of policy-driven actions—such as managing exchange rates and curbing inflation—rather than operational failure. They maintain that central banks are mandated to prioritize price stability over profitability and that the BoG's negative equity position, while significant, does not imply insolvency because of the bank's statutory backing and role as a state institution. Furthermore, they defended the gold sales as a legitimate strategic asset reallocation necessary for maintaining reserves and economic stability.

The ongoing dispute has sparked broader calls for the urgent recapitalization of the Bank of Ghana to restore confidence in the nation's financial framework. Experts and lawmakers alike have warned that without a clear plan to address the GH¢93.8 billion negative equity, the bank's ability to respond to future shocks may be compromised. Kojo Oppong Nkrumah has also criticized the procedural handling of the report, warning that presenting it outside formal parliamentary channels risks further politicizing the central bank. As the debate continues, the focus remains on whether the current stabilization efforts will ultimately translate into sustainable growth or if the heavy financial costs incurred by the central bank will pose a long-term burden on Ghanaian taxpayers.