Former Information Minister Kojo Oppong Nkrumah has cautioned the Mahama administration over what he calls an excessive sterilisation policy, which has withdrawn approximately GH₵60 billion from the economy.
Speaking on Channel One TV, Mr. Oppong Nkrumah said the government’s aggressive liquidity absorption, intended to tighten monetary conditions, could slow private sector activity, hinder production, and stall job creation.
“This government has maintained a tight monetary policy until recently when they eased it slightly. Now they are pursuing sterilisation. While it may help in the short term, it has long-term consequences,” he said.
He revealed that about GH₵60 billion has already been withdrawn from circulation and deposited with the Bank of Ghana, preventing it from stimulating demand or production.
“They believe this is excess liquidity and have parked it at the Central Bank, rather than using it to fuel production or create jobs,” he added.
While recognising sterilisation as a legitimate monetary policy tool, Mr. Oppong Nkrumah warned that overuse could harm the real economy.
“We may disagree on the extent, but we consider this level excessive. These funds could be mobilised through other tools to drive production, create jobs, and stimulate growth,” he said.
He compared the current approach with the Akufo-Addo administration, noting that prior monetary tightening helped reduce inflation from 54% in 2020 to about 23% in 2024.
Mr. Oppong Nkrumah stressed that while inflation management remains important, policy focus should now shift toward stimulating production and job creation to support Ghana’s economic recovery.
