The Minister of Agriculture and Meals Safety, Senator Abubakar Kyari, has introduced that the federal authorities will reclaim idle silos throughout Nigeria on account of huge post-harvest losses presently estimated at $10 billion yearly.
This was disclosed in a press release through the Minister’s official Fb web page on Friday.
In accordance with Kyari, a committee might be constituted to overview contractual clauses and efficiency, and “any silos left idle might be reclaimed whereas defaulters of the contract face sanctions.”
He harassed that it’s unlucky that some concessionaires have deserted their silo services, highlighting that going ahead, strict compliance might be enforced.
FG’s Transfer to Revive Silo Concession Programme
In accordance with the assertion, the Minister on Thursday chaired a high-level assembly with the Infrastructure Concession Regulatory Fee (ICRC) led by its Director Normal, Dr. Jobson Oseodian Ewalefoh, alongside the Fee’s Head of Authorized, Director of Contract and Compliance, and different administration employees.
- The assembly targeted on reviewing the efficiency of Nigeria’s silo concession programme, which was earlier launched to handle the federal government’s incapability to optimally utilise its silo complexes on account of funding and operational constraints.
On his half, the ICRC DG, Dr. Ewalefoh, emphasised that solely non-public firms with actual operational wants for silos ought to retain them.
- He warned that “deserted silos can be retrieved by the Federal Authorities,” including that some concessionaires have didn’t remit required returns to authorities coffers.
“A brand new committee might be established to overview contractual clauses, assess efficiency, and set clear intervals for analysis,” the assertion partly reads.
- Senator Kyari highlighted the pressing have to revive silo storage services as a pathway to lowering Nigeria’s huge post-harvest losses, “presently estimated at $10 billion yearly.”
“Storage services are important to our meals safety drive, as they straight deal with wastage and guarantee year-round availability of staple crops,” he added.
The Minister added that the Ministry, working with ICRC, will intensify oversight, implement compliance, and make sure that solely competent non-public operators handle silo services, in alignment with President Bola Ahmed Tinubu GCFR’s agricultural transformation agenda aimed toward making certain nationwide meals safety.
Perception into Concession Programme
In accordance with the assertion, out of the 17 silo complexes concessioned to 5 non-public firms, solely Flour Mills of Nigeria, which operates three silo complexes below three separate Particular Goal Autos (SPVs), has met all situations and is performing optimally.
“Many concessionaires defaulted on their fee obligations, with solely Flour Mills constantly assembly efficiency and monetary situations,” the assertion added.
The Ministry’s overview course of revealed that a number of concessionaires didn’t put silo services into optimum working situation regardless of earlier agreements, highlighting that there’s little or no progress in some services, with reported circumstances of vandalism and perimeter fence collapse in places equivalent to Ikorodu and Ogoja.
Backstory
The Nigerian authorities had, in 2022, revealed its plan to lease meals silos to the non-public sector and earn N18 billion from the method.
This was disclosed by the then-Minister of Agriculture and Rural Growth, Dr. Mohammad Abubakar.
Abubakar disclosed that the FG deliberate to concession 19 silos to allow non-public sector participation in meals storage for farm produce.
