Former Information Minister and Ofoase Ayirebi MP, Kojo Oppong Nkrumah, has raised concerns over the Mahama administration’s decision to lock GH¢60 billion from the Ghanaian economy, cautioning that such a move could undermine production and job creation.
Speaking on Face to Face on Channel One TV on Tuesday, October 28, Mr Oppong Nkrumah said the government’s aggressive absorption of liquidity, as part of its sterilisation programme, risks slowing private sector activity and economic growth.
He disclosed that the authorities have already collected about GH¢60 billion from the economy, effectively locking the funds at the Bank of Ghana.
The former Works and Housing Minister acknowledged that sterilisation is a recognised monetary policy tool but argued that its overuse could have detrimental effects.
Mr Oppong Nkrumah contrasted the current approach with the monetary strategy of the Akufo-Addo administration, which he served under, noting that tight monetary policy had successfully reduced inflation from 54 percent at the peak of the global cost-of-living crisis in 2020 to about 23 percent by the time it left office in 2024.
The MP stressed that while controlling inflation is crucial, policy efforts must now prioritise stimulating production and job creation to ensure sustainable economic recovery.