Cap Borrowing, protect the central bank: Banking expert urges bold constitutional reforms

Ghana’s economic challenges have prompted banking expert Dr. Richmond Atuahene to issue a strong call for constitutional reforms, aimed at curbing excessive government borrowing and reinforcing the independence of the Bank of Ghana.

Addressing participants at a national dialogue on constitutional review, Dr. Atuahene described the country’s current financial situation as alarming. He proposed an amendment that would legally restrict any government from borrowing beyond 50% of Ghana’s Gross Domestic Product (GDP), stressing that the country’s unchecked debt accumulation has led to a worsening economic crisis.

Drawing on his earlier predictions, Dr. Atuahene referenced a 2018 lecture where he warned that Ghana’s debt trajectory was unsustainable. “Back then, I said we’d pay dearly for our borrowing spree. I was mocked. But today, we’re not just paying through our noses—we're bleeding for it.”

He believes that enshrining a borrowing cap in the Constitution would deter political leaders from making unrealistic campaign promises that end up being financed through unsustainable loans. “Let’s fix it in the law: no borrowing beyond 50% of GDP. It’ll keep leaders honest and save future generations from inheriting massive debt.”

Beyond fiscal discipline, Dr. Atuahene also highlighted the need to protect the independence of the Bank of Ghana. He criticized the frequent, politically motivated removals of central bank governors, calling them unconstitutional and destabilizing.

He cited the controversial case of Nigeria’s former central bank governor, who has faced house arrest since a change in political leadership, warning that Ghana risks similar governance failures without constitutional safeguards.

“It's time we redesigned our Constitution so that no one can treat the country’s institutions like personal property,” he concluded.