FG concessions 19 silos, to earn N6b annually from deal

There Federal Government (FG) has handed over 19 silos located in 18 states and the Federal Capital Territory (FCT) to six concessionaires for storage of food at a sum of six billion naira annually. The handover of the silos was done by the former Minister of Agriculture and Rural Development, Chief Audu Ogbeh, in Abuja, recently.

Ogbeh who charged the concessionaires to manage the silos effectively being national assets disclosed that the FG would retain six of the 33 silos for strategic reasons saying that “We need the silos because our population is growing’’

He advised the concessionaires on the need for best management of the silos through the use of afla-safe spray to fight aflatoxin infestation adding that they should endeavour to bag grains with jute bags so as to keep the produce within 5% moisture content.   

The former Chairman, Senate Committee on Agriculture, Sen. Abdullahi Adamu, commended the government for the concession saying that “I hope that the idea behind the concession of the silos is to attain the objective for which they are being set up. I am aware that ever before I knew I will be a senator that these silos have been constructed and they have over these years been lying fallow and waste. It is my hope that those in whom the trust is placed and who put their monies on the line will put the silos to good use and for the purpose to which the silos is granted to them. I hope they will live up to their financial obligation in the concession’’

Permanent Secretary of the ministry, Dr. Mohammed Umar, congratulated the concessionaires who scaled through a thorough process of selection, adding that the program would increase private sector participation in agriculture and attract investment into the sector.

The Director-General of the infrastructure Concession Regulatory Commission (ICRC), Mr Chidi Izuwah said that the concessionaires paid an upfront fee of N1.3 billion as entry fee and that the government would receive N3.4 billion fixed annual concession fee, and a profit share of N6 billion annually from the deal.

Speaking on behalf of other concessionaires, Mr Guido Firetti, the Managing Director of Matrixville Limited assured that the beneficiaries would impact positively on every aspect of the value chain and that the investment would positively impact on the farmers, processors and the consumers across the country.

The concessionaires are Agro-Universal Consortium, Coscharis Farms Limited, Matrixville Ltd., Flour Mills Ltd., Ebony Agro Industries Ltd., and Neon Farms Africa Consortium.

The states where the silos are located are Kaduna, Kwara, Kebbi, Jigawa, Benue, Gombe, Oyo, Ogun, Bauchi, Cross River, Ekiti, Ondo, Plateau, Sokoto, Kano, Akwa Ibom, Ebonyi, Anambra and the Federal Capital Territory (FCT).