The former Finance Minister under the NPP and Ranking Member on the Finance Committee of Parliament Dr. Mohammed Amin Adam (MP) has said that the Government must ensure that investors, particularly Pension Funds, are not subjected to undue pressure to participate in the bond market adding that, investment decisions should be grounded in a balanced assessment of cost and risk, safeguarding the interests of these vital contributors to our national pension system.
Dr. Amin in a statement issued in Accra dated 16th July, 2025, said “the credibility of government financing commitments remains uncertain,” sounding the alarm bills on unreliable Government financing plans.
According to him, “The 2025 budget projects a total financing requirement of GHS 56.91 billion, comprising GHS 36.99 billion in Net Domestic Financing and GHS 21.41 billion in Foreign Net Financing. However, as of 11th July 2025, auction data reveals over GHS 6 billion in repayments, highlighting a reallocation of resources away from critical sectors of the economy to cover auction shortfalls”.
He stressed that this situation raises serious concerns about the reliability and sustainability of our financing assumptions, “Consequently, many flagship government programs remain underfunded, with Ministers expressing frustration over cash flow constraints—even for budget lines duly approved by Parliament.
We must address these issues promptly to restore fiscal credibility and ensure the effective implementation of our national development agenda”.
Below is the full statement:
NPP must re-group quickly as NDC policies fail
It is not unusual for a party defeated in elections seven months ago to face the internal problems we are currently experiencing. This is a phase that will undoubtedly pass.
The New Patriotic Party (NPP) will rediscover its winning formula well ahead of the next general elections.
Unsurprisingly, our opponents, NDC, have so far failed to demonstrate the competence needed to meet the expectations of the majority of Ghanaians.
The goodwill they enjoyed at the outset of their administration is rapidly eroding under the weight of failing policies.
Over the last six months, we have seen taxes increased and extensions of taxes that were due to end this year, with the latest increase – the “Dumsor Levy”-coming into force today, July 16, 2025.
The government has refused to heed the pleas of Ghanaians, including transport associations, regarding the potential increase in transport fares due to the levy.
This levy will worsen the cost of living for Ghanaians.
We have also seen the dismissal of innocent Ghanaian youth from employment and heightened insecurity.
It is deeply troubling to learn that a government that promised jobs will implement measures that take jobs away from the very people who voted them into office.
If you have recently lost your job, please know that the NDC has abandoned you and shows little concern for your welfare.
The future NPP Government will restore your jobs and bring back dignity to the young people of our country.
Notwithstanding the artificial boost in the value of the Cedi, prices for goods and services remain very high. Electricity tariffs have also doubled, resulting in a total increase of 17%. With only a 10% rise in basic wages,
Ghanaians can no longer rely on their disposable income to support their families. Not only are the false narratives about the economy they inherited being dismantled, but their attempt to win the sympathy of the people of Ghana through propagandist economic figures is also crumbling before their very eyes.
Despite the denial by the Governor of the Bank of Ghana regarding intervention in the forex market, the International Monetary Fund’s latest Staff Report revealed that the Bank intervened with $1.4 billion in the first quarter of 2025.
This confirms our assertion that the intervention was supported by international foreign reserves accumulated by the previous NPP government.
Additionally, the large accumulation of non-existent payables used to generate a high primary fiscal deficit for 2024—based on which they claimed there was a breach in the IMF programme—can no longer stand, as the IMF report has uncovered troubling findings from an initial audit.
It shows that “a significant share of such payables may not be supported by valid documentation, suggesting the amount may be revised downward and a better fiscal outcome could eventually emerge”.
After claiming high market confidence in the economy at the start of the year due to oversubscription of government papers, the market has now shown that policy inconsistency can cause multiple auction failures.
Out of the total of 28 treasury auctions held from January 3, 2025, to July 11, 2025, 13 auctions failed to meet the target, with bid-cover ratios below 1.0, despite high participation earlier in the year.
These auction failures indicate investor fatigue as the Government continues to manipulate rates at the auctions to undermine price discovery.
The failures also suggest a declining investor appetite for government securities, partly due to policy uncertainty. The government must proceed cautiously in its efforts to reopen the bond market, especially in light of the recent debt exchange programme.
As the Government aims to mitigate risks in the debt portfolio by extending its maturity profile, it must do so responsibly to avoid jeopardising the significant progress made in restoring debt sustainability through our successful external debt restructuring.
The Government must ensure that investors, particularly Pension Funds, are not unfairly pressured to participate in the bond market. They should do so based on a balanced consideration of cost and risk.
Additionally, the credibility of government financing commitments cannot be assured.
The 2025 budget projects a financing of GHS56.91 billion for 2025, including (Net Domestic Financing – GHS36.99 billion; and Foreign Net – GHS21.41 billion). As of 11th July 2025, auction data indicates over GHS6 billion in repayments, as the government reallocates resources from vital sectors of the economy to cover auction shortfalls.
This situation raises serious questions about the reliability of the financing assumptions.
As a result, many flagship programs of the government remain underfunded as Ministers openly express frustration over cashflow constraints, even for budget lines approved by Parliament.
It is worth noting that the government is only now planning to pay contractors using a loan it is obtaining from the World Bank, despite the Ghana Revenue Authority exceeding its half-year revenue target by approximately GHS4 billion.
Also, the 24-Hour Economy Programme remains a theoretical construct with attractive visuals, reminiscent of the famous Green Book from the last NDC government, as the government has not allocated a budget for its realisation.
The launch of the program recently was meant to play to the gallery, as it is practically difficult to realize the objectives of a program that has no dedicated source of funding. I advise the Minister for Finance to utilise the Mid-year Budget Review to clarify the Government’s financing strategy for the program and the economy.
These and many other reasons demonstrate that the NDC’s fanciful attempt to show courage in the face of unredeemable promises will soon become a reality for the people of Ghana to see. The upcoming National Delegates Conference and subsequent Presidential Primaries must serve as rallying points for our party and supporters nationwide, to cast off the weight of the 2024 defeat and reenergize our front for victory in the next elections.
Three years may seem distant, but in political terms it is just around the corner, especially as the cost of living gap continues to widen.
The campaign for 2028 begins now. Let us rally behind the leadership of the party, for in unity lies strength. We have, in the past, overcome even greater odds to secure victory. We have the capability—and the resolve—to rise above our current challenges, regain the trust of the Ghanaian people, and return to power.
I wish the party a successful and impactful National Conference.
SIGNED
- MOHAMMED AMIN ADAM (MP) RANKING MEMBER FINANCE COMMITTEE, PARLIAMENT OF GHANA
