Government to allocate funds for grain silos next year – Agric Minister
The government will make adequate allocations in next year’s budget for the construction of silos to store grains, Minister of Food and Agriculture Eric Opoku has announced.
According to him, Ghana produced about 4.6 million tonnes of maize last year, exceeding the country’s estimated demand of 3.6 million tonnes and resulting in a surplus of approximately one million tonnes.
Mr Opoku has therefore urged the Ghana Food Buffer Stock Company (NAFCO) to expand its storage capacity by constructing more silos to accommodate the country’s growing cereal production.
He made the disclosure at NAFCO’s first Annual General Meeting held in Accra last Thursday.
The AGM, held on the theme, “Strengthening Food Security through Strategic Partnership,” provided a platform for the company to present its annual reports and financial statements covering the financial years from December 31, 2010, to December 31, 2025.
The meeting also allowed the board and management to account to shareholders for their stewardship of the company.
Mr Opoku said strengthening NAFCO’s capacity to purchase excess farm produce would provide farmers with a reliable market while ensuring that increased domestic production did not result in losses for producers.
He disclosed that NAFCO currently has 20,443 tonnes of grains in storage, describing the stock as an important step towards rebuilding Ghana’s strategic food reserves.
The minister said his ministry had collaborated with NAFCO’s board and management to improve the company’s operations and rebuild its reserves after years of financial and operational challenges.
Mr Opoku also revealed that the government had directed NAFCO to release 50,000 bags of grains to settle Ghana’s outstanding obligation to the Economic Community of West African States (ECOWAS).
He explained that Ghana borrowed grains from ECOWAS in 2018 to support the School Feeding Programme.
“Today, by the grace of God and with the prudent management of the company, we have been able to procure enough, more than enough, for us to pay back what we borrowed,” he said.
The minister further directed NAFCO to ensure that suppliers contracted for public feeding programmes sourced food directly from Ghanaian farmers instead of relying on imported products.
Mr Opoku said using imported food for programmes such as Free SHS undermined local production, as the expenditure created jobs outside Ghana while reducing demand for locally produced food.
Meanwhile, NAFCO Chief Executive Officer (CEO), George Abradu-Otoo, disclosed that the company recorded profits in several previous years, including 2018, 2019, 2020, 2022 and 2023.
However, he said the company’s latest financial performance had surpassed all previous results.
Mr Abradu-Otoo said NAFCO recorded a net profit before tax of GH¢91.7 million in 2025, which not only reversed the GH¢19.4 million loss recorded in the previous year but also represented the highest profit in the company’s history.
He added that NAFCO’s gross profit margin increased significantly from 1.61 per cent in 2024 to 13.96 per cent in 2025.
According to him, the improvement was driven by stronger cost controls and increased revenue.
He said the company’s return on operating assets also improved from a negative 63.80 per cent to a positive 26.29 per cent, reflecting better utilisation and management of its assets.
Mr Abradu-Otoo further disclosed that NAFCO paid GH¢20.3 million in taxes to the state in 2025, describing it as the highest annual tax contribution in the company’s 16-year history.
Despite the improved financial performance, he said NAFCO continued to face operational challenges, particularly in managing its working capital.
By Esther Padmore Amonoo
