Gbedemah, who himself got elected into the Legislative Assembly, became the first Ghanaian Minister for Health and Labour in Nkrumah's government. In 1954, he became the Minister of Finance, a position he held for seven years. He was influential in getting an initially reluctant United States government to back the building of the Akosombo Dam. Later, as his relationship with Nkrumah deteriorated, Gbedemah was demoted by Nkrumah to the post of Minister of Health in May 1961. It is alleged by US sources that at a point, Gbedemah was considering the overthrow of Nkrumah. He is quoted as saying: "I would be sorry to have to do it but country has had enough of Nkrumah's arrogance, whims and madness." Nkrumah demanded Gbedemah's resignation in September 1961.