Togbe Afede calls for restructuring as BoG spends GH¢1.62bn on employees in 2022

The Agbogbomefia of the Asogli State, Togbe Afede XIV, has voiced concerns regarding the remuneration of employees of the Bank of Ghana (BoG).

In a recent piece dated April 11, 2024, Togbe Afede XIV revealed that the BoG allocated a substantial amount of GH₵1.62 billion (£147.27 million at the 2022 average cedi-pound exchange rate) for the salaries of its 2,203 employees.

Drawing comparisons between the Bank of Ghana and the Bank of England (BOE), Togbe Afede XIV underscored a significant disparity.

He noted that while the BoG pays an average of £66,851 per employee, the BOE pays substantially higher at £95,829 per employee.

Additionally, Togbe Afede XIV highlighted a distinct difference in the financial circumstances of the staff. Unlike the staff of the Bank of England, who do not owe loans to their employer, BoG staff carry an average debt of GH₵566,046 (£51,459) per employee as of the end of 2022.

Moreover, Togbe Afede XIV expressed concern over the considerable sum of staff loans, totaling GH₵1.247 billion, with an average indebtedness of GH₵566,046 per employee.

He argued that such a financial burden should not be overlooked, particularly amidst the current economic challenges faced by the country, where many Ghanaians struggle to make ends meet.

In light of these revelations, Togbe Afede XIV urged for a reassessment of the remuneration structure within the Bank of Ghana, emphasising the need for equitable compensation practices that align with prevailing economic realities and promote financial stability for both the institution and its employees.

“It is difficult to believe how some BoG’s operating incomes and expenses compare with those of the Bank of England (BOE). For example, BOG spent GH₵1.62 billion (£147.27 million at the 2022 average cedi-pound exchange rate) on its 2,203 employees, that is, £66,851 per employee, about 38x Ghana’s GDP per capita.

“BOE on the other hand, with an average labour force of 4,675 per their 2021-22 financial report, spent £448 million, that is, £95,829 per employee, about 2.6x UK’s GDP per capita. Unlike BOE staff who do not receive loans from their employer, BOG staff owe the bank GH₵566,046 (£51,459) on average or per employee as at the end of 2022.”

“The Bank’s personnel costs amounted to GH₵1.62 billion. With a total of 2,203 employees, this equals an average remuneration of a colossal GH₵735,361 per employee in 2022 or GH₵61,280 monthly per employee, including several allowances. These employees also had staff loans amounting to GH₵1.247 billion, an average of GH₵566,046 per head,” an excerpt of his piece said.

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