The Federal Government has announced plans to reclaim idle silos across the country as part of efforts to tackle post-harvest losses, which are currently estimated at $10 billion annually.

Minister of Agriculture and Food Security, Senator Abubakar Kyari, disclosed this on Friday via his official Facebook page, stressing that abandoned facilities will be repossessed and defaulting concessionaires sanctioned.

“Storage facilities are essential to our food security drive, as they directly address wastage and ensure year-round availability of staple crops,” Kyari said.

According to him, a committee will be constituted to review contractual agreements and assess the performance levels of companies managing silo complexes. 

He emphasised that strict compliance will be enforced going forward.

The announcement followed a high-level meeting on Thursday between the Ministry and the Infrastructure Concession Regulatory Commission (ICRC), led by its Director General, Dr. Jobson Oseodian Ewalefoh. 

The meeting focused on evaluating of Nigeria’s silo concession programme, which was earlier introduced to address funding and operational challenges in government-run facilities.

Dr. Ewalefoh stated that only private operators with genuine operational capacity should retain silo contracts, warning that “abandoned silos would be retrieved by the Federal Government.” 

He further revealed that several concessionaires had failed to remit agreed returns to government coffers.

Findings from the review show that out of the 17 silo complexes concessioned to five private companies, only Flour Mills of Nigeria, operating three silo complexes under three Special Purpose Vehicles (SPVs), has fully met performance and financial obligations.

By contrast, other operators defaulted on agreements, with some facilities left vulnerable to vandalism and perimeter fence collapse in areas such as Ikorodu and Ogoja.

The Federal Government announced in 2022 plans to lease 19 silo complexes to private investors, a move expected to generate N18 billion in revenue. However, progress has been slow, and many facilities are still underutilised.

Kyari reiterated that restoring silo storage capacity is a critical step toward reducing food waste, boosting farmer income, and strengthening President Bola Ahmed Tinubu’s agricultural transformation agenda.

Source: NairaMetrics

Credit Image: Senator Kyari

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DG of ICRC, Dr. Jobson Ewalefoh, and Minister of Agriculture and Food Security, Senator Abubakar Kyari,