FG set to review concession of silos in Nigeria


The federal government says it would review the concessioning of its silos leased to private firms in the country.

Just last year the federal government earned about N1.3 billion from concession of about 19 Grain Reserves Silo Complex to the private sector.

Besides, the government was also to earn about N10.4 billion from the concessionaires, as they are expected to pay a yearly concession fee of N3.4 billion and another N6 billion as share of profit from the business they are doing.

Seven companies including Flourmills Limited, Flourmills LLC, Matrix Ville, Cosharis Farm Limited, Agro Universal Consortium, Ebony Agro Industry Limited and Lion Farms Africa, emerge as bid winners of the 10-year contract agreement.

But minister of Agriculture and Rural Development, Alhaji Muhammad Sabo Nanono during his inspection tour of facility at the 250, 000 Capacity metric tonnes silos in Jahun Local Government Area of Jigawa State over the weekend, informed that the federal government would revoke the license of any concessionaire who failed to meet the terms of its agreement with the Ministry.

Nanono pointed out that “I am here to see some of the silos leased to the companies and see whether they are doing the job in accordance with the concession agreement.”

He further said “We will review all the concessions to see if they met the necessary conditions. If they do; we allow them to continue and revoke those who do not comply.”

The minister noted that the silos were provided in different parts of the country for strategic reserves and enhance  the food security programme of  the federal government which is in line with Mr President’ s agenda for the Agricultural Sector.

According to him, the facilities were also designed to mop up excess grains during the harvest season for preservation and price stability.

In his remarks, the Governor of Jigawa State, represented by the secretary to the Jigawa State Government, Alhaji  Adamu Abdulkadir Fanini, who accompanied the minister on the inspection tour, said the state government would key into the federal government’s policies and programmes in the agricultural sector, assuring that the state government would take advantage of the policy to create jobs and grow the economy of the state.

In his brief on the facility to the minister, the Regional director, North West in the Ministry, Engr Olusegun Owolabi, said that all the activities at the site were being handled by the concessionaire; Martrix Ville Company, from staffing, maintenance and purchasing of grains for storage under the supervision of the Ministry.

The minister also inspected the 25,000 metric tonnes Gaya Silo Complex in Gaya Local Government Area, in Kano State.



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