Government to Allocate Funds for Grain Silos as Ghana Records Maize Surplus

The government will make adequate allocations in the 2027 national budget for the construction of grain silos as Ghana moves to strengthen food storage and manage rising agricultural production.

Minister of Food and Agriculture Eric Opoku disclosed the plan at the first Annual General Meeting of the National Food Buffer Stock Company (NAFCO) in Accra.

According to the minister, Ghana produced approximately 4.6 million tonnes of maize in 2025, compared with estimated national demand of 3.6 million tonnes, resulting in a surplus of about one million tonnes.

Mr Opoku said the increase in domestic production makes it necessary for Ghana to expand its storage infrastructure to prevent post-harvest losses and provide farmers with a dependable market for their produce.

Government plans more grain storage facilities

The minister urged NAFCO to play a leading role in expanding the country’s grain-storage capacity, particularly through the construction of additional silos.

He said adequate resources would be provided in next year’s budget to support the initiative.

The move is expected to strengthen Ghana’s ability to store excess production during periods of high output and release food onto the market when supplies become tight.

Mr Opoku stressed that improving NAFCO’s capacity to purchase and store surplus agricultural produce would help create a more reliable market for farmers.

He said increased production should not result in losses for farmers simply because adequate storage and market infrastructure are unavailable.

NAFCO holds more than 20,000 tonnes of grain

NAFCO currently has 20,433 metric tonnes of grains in storage, according to the latest government figures.

Mr Opoku described the stock level as an important step towards rebuilding Ghana’s strategic food reserves following years of financial and operational difficulties.

The minister said the government had worked with NAFCO’s board and management to strengthen the company’s operations and rebuild its reserves.

The growing stockpile also comes as Ghana seeks to improve domestic food production and reduce dependence on imported food.

NAFCO ordered to release 50,000 bags to ECOWAS

The government has also directed NAFCO to release 50,000 bags of grains to settle Ghana’s outstanding obligation to the Economic Community of West African States (ECOWAS).

Mr Opoku explained that the obligation originated from a 2018 grain-borrowing arrangement involving Ghana and ECOWAS to support the School Feeding Programme.

He said NAFCO now has sufficient stocks to enable the country to repay what it borrowed.

“We have been able to procure more than enough to pay back what we borrowed,” the minister said.

The directive was issued by President John Dramani Mahama, according to the minister.

NAFCO records GH¢91.7 million profit

The AGM also highlighted a significant improvement in NAFCO’s financial performance.

NAFCO recorded a net profit before tax of GH¢91.7 million in 2025, compared with a GH¢19.4 million loss in 2024.

Chief Executive Officer George Abradu-Otoo described the 2025 results as a landmark achievement for the company.

The company’s gross profit margin also increased substantially, from 1.61% in 2024 to 13.96% in 2025.

NAFCO’s return on operating assets improved from negative 63.80% to positive 26.29%, indicating a major change in the way the company’s assets were being deployed and managed.

The company also paid GH¢20.3 million in taxes in 2025, which NAFCO described as its highest annual tax contribution in its 16-year history.

Government wants local farmers to benefit

Mr Opoku also directed NAFCO to ensure that suppliers contracted to provide food for public feeding programmes purchase food directly from Ghanaian farmers where possible.

He warned that relying on imported food for programmes such as Free SHS could undermine local agricultural production.

According to the minister, purchasing locally produced food would help keep government expenditure within the domestic economy while creating jobs and providing farmers with a ready market.

The policy is also intended to ensure that increased agricultural production translates into stronger incomes for farmers.

Working capital remains a challenge

Despite the improved financial performance, NAFCO’s management acknowledged that the company continues to face operational challenges.

Mr Abradu-Otoo identified working-capital management as one of the key risks confronting the company.

This is particularly important for a food-buffer institution because purchasing large quantities of crops requires significant funds, while storage and eventual sales can take time.

NAFCO will therefore need sufficient financial resources and storage capacity to effectively purchase surplus crops from farmers when production is high.

Grain storage becomes critical as production rises

The government’s planned investment in silos comes at a time when Ghana is reporting higher domestic maize production.

With reported maize output of 4.6 million tonnes against estimated demand of 3.6 million tonnes, the country needs adequate infrastructure to store the surplus and prevent it from becoming a post-harvest burden.

Expanding storage facilities could also strengthen Ghana’s strategic food reserves and give NAFCO greater capacity to intervene when food prices or supplies come under pressure.

The government is therefore positioning NAFCO not only as a buyer and distributor of food but also as a key institution in Ghana’s broader food-security strategy.

As the 2027 budget is prepared, funding for grain silos and other agricultural storage infrastructure is expected to become an important part of the government’s plans to manage increased domestic food production.