Banking consultant calls for constitutional ceiling on gov’t borrowing

Ghanaian banking consultant, Dr. Richmond Atuahene, has called for urgent constitutional reforms to place strict limits on government borrowing and to strengthen the independence of the Bank of Ghana.

Speaking at a recent constitutional review dialogue, Dr. Atuahene proposed an amendment to restrict government borrowing to no more than 50% of GDP. He described Ghana’s current debt situation as “disappointing,” warning of long-term consequences if decisive action is not taken.

“Never in the history of any African country have we seen this,” he remarked, referencing the unprecedented erosion of citizens’ savings. Dr. Atuahene said his warnings as far back as 2018 were ignored and even ridiculed, adding that Ghanaians are now “paying with their blood instead of money.”

He emphasized that enshrining a borrowing ceiling in the Constitution would prevent future governments from making populist promises and accumulating unsustainable debt.

Dr. Atuahene also raised concerns about political interference at the Bank of Ghana. He cited the arbitrary removal of several central bank governors over the years, arguing that the Constitution’s provisions on tenure must be respected.

“A governor should not be forced out simply because a new party assumes office,” he said, pointing to Nigeria, where a former central bank head is under house arrest following a change in government.

He concluded by urging constitutional clarity to safeguard the nation’s financial stability and ensure that governance is not dictated by short-term political interests.