Government earns N1.3b on concession of 19 silos, firms

Government earns N1.3b on concession of 19 silos, firmsThe Federal Government earned about N1.3 billion from concession of about 19 Grain Reserves Silo Complex to the private sector.

Besides, it would also earn about N10.4 billion from the concessionaires, as they are expected to pay as yearly concession fee of N3.4 billion and another N6billion as share of profit from the business they are doing.

The 10-year contract agreement also saw about seven companies emerge as bid winners, including Flourmills Limited, Flourmills LLC, Matrix Ville, Cosharis Farm Limited, Agro Universal Consortium, Ebony Agro Industry Limited and Lion Farms Africa.

The Minister of Agriculture and Rural Development, Chief Audi Ogbeh, during the official handover ceremony of the silos to the successful bidders, disclosed that of the 33 silo complex in the country, 19 are on concession, adding that the government would manage six for strategic grain reserve.He urged the concessionaires to be aware of aflatoxin while managing the grains, saying the problem is becoming worse due to high temperature, recommending aflasafe to them.

He pointed out that the Food and Agricultural Organization has said polypropylene bags are no longer accepted for spring grains, urging them to make use of jute bags.

The Acting Director of the Infrastructure Concession Regulatory Commission (ICRC), Chidi Uzuah, said the transaction was transparently done, as the agency and the Economic and Financial Crimes Commission (EFCC) observed the process.

“The significance of this is that the assets that were hitherto abandoned or not put to good use are being transformed to create value and would also yield financial benefit to Nigerians,” he said.

According to him, in the case the concessionaires default, government has the right to take over the asset, as they were not privatised, but under concession and still remain the property of the Federal Government.

Check Also

Women entrepreneurs suffer $42b financing gap in Africa, says Adesina

Women entrepreneurs suffer $42b financing gap in Africa, says Adesina

  Women entrepreneurs across Africa have continued to suffer insufficient funds with an estimated $42b …

Leave a Reply

Your email address will not be published. Required fields are marked *

× Get News Alert