FG Targets Underutilised Silo Concessions to Cut $10bn Annual Post-Harvest Loss

News in Brief

• -The FG is reviewing the silo concession programme due to underperformance by private operators in Nigeria.
• -This revamp initiative will reduce the country’s $10 billion annual post-harvest food losses.

The Nigerian government is set to revamp its underutilised silo concession programme to tackle the chronic problem of post-harvest losses, which annually drains over $10 billion from the economy. 

Minister of Agriculture and Food Security, Senator Abubakar Kyari, disclosed that the initiative will create a resilient storage system that will reduce wastage and bolster food security in the country.

Reviewing Silo Concession for Food Security

Speaking at a high-level meeting with the Infrastructure Concession Regulatory Commission (ICRC), Kyari revealed that out of 17 silo facilities concessioned to five private companies, only Flour Mills of Nigeria has fulfilled contract conditions and maintained optimal operations. Others have defaulted on payments and failed to rehabilitate the facilities, leading to abandonment and vandalism in many locations.

“These storage facilities are crucial to our national food security strategy,” Kyari emphasised. “They not only reduce losses after harvest but also ensure staple crops are available throughout the year.”

The ICRC’s Director-General, Dr. Jobson Oseodian Ewalefoh, supported this view, calling for a thorough review of concession agreements to retain only private operators with genuine operational needs. “Abandoned silos pose a risk to food security and must be reclaimed by the government,” he said.

The renewed focus promises stricter monitoring, contract enforcement, and a review of concession terms to ensure efficient management. This move aligns with President Bola Ahmed Tinubu’s vision for agricultural transformation and food sovereignty in Nigeria.

What you Should Know About Nigeria's Silos

Nigeria's silo concession initiative began around 2009 with the construction of 33 grain silo complexes with a storage capacity of about 1.3 million metric tonnes. These silos, built across different states in the country, were designed to ensure food security, stabilise prices, reduce post-harvest losses, and provide storage capacity for staple crops. 

However, due to the high cost of management, under-utilisation, they were operating below 10% of their capacity. This prompted their concession by the government through a public-private partnership (PPP)  process supported by the World Bank and managed by the Infrastructure Concession Regulatory Commission (ICRC) starting in 2012.

After a formal Request for Expression of Interest was issued in 2014 to develop and operate these silo complexes, 22 of the 33 silos were concessioned to private companies by 2017 with the task of rehabilitating, operating, and maintaining them. 

However, challenges such as defaults, abandonment, vandalism, and infrastructure decay arose, leading to stalled projects and legal disputes in some cases. The government has since been reviewing contracts and reclaiming abandoned silos to improve the effectiveness of the program and reduce significant annual post-harvest losses plaguing the agricultural sector.

Way Forward

The success of the revamped silo concession will hinge on stricter contract enforcement, replacing defaulting operators with capable firms, and setting clear performance targets. Integrating farmer groups into the programme and modernising storage with climate-smart technology will boost efficiency. With better oversight and infrastructure, Nigeria can cut post-harvest losses and strengthen food security.