The government plans to make allocations in the 2027 Budget for the construction of grain silos as Ghana grapples with the storage challenge created by rising cereal production.
Food and Agriculture Minister Eric Opoku says investment in Ghana grain silos under the 2027 Budget has become necessary after maize production reached about 4.6 million tonnes in 2025, compared with estimated national demand of 3.6 million tonnes.
That leaves an estimated surplus of one million tonnes which, without adequate storage and structured purchases, could expose farmers to post harvest losses and falling prices.
Mr Opoku announced the plan at the first Annual General Meeting of the National Food Buffer Stock Company in Accra on September 24.
NAFCO Told to Expand Storage Capacity
The Minister urged NAFCO to take a more active role in absorbing surplus production and building strategic stocks.
He said stronger storage capacity would help guarantee markets for farmers while preventing increased agricultural output from becoming a financial burden for producers.
NAFCO currently holds 20,443 tonnes of grains in storage, according to the Ministry of Food and Agriculture, which described the stock as part of efforts to rebuild Ghana’s strategic food reserves.
The company has also been directed to release 50,000 bags of grain to settle Ghana’s outstanding obligation to the Economic Community of West African States.
Ghana borrowed grain from ECOWAS in 2018 to support the School Feeding Programme.
“Today, by the grace of God and with the prudent management of the company, we have been able to procure enough, more than enough, for us to pay back what we borrowed,” Mr Opoku said.
Mr Opoku also directed NAFCO to ensure suppliers working on government feeding programmes source produce directly from Ghanaian farmers.
He argued that relying on imported food for programmes such as Free Senior High School weakens demand for domestic produce and effectively transfers employment opportunities outside the country.
The policy direction is intended to connect rising agricultural production with institutional demand from schools and other public feeding programmes.
NAFCO Posts Record GH¢91.7m Profit
NAFCO Chief Executive Officer George Abradu-Otoo used the AGM to announce a sharp turnaround in the company’s financial performance.
NAFCO recorded a net profit before tax of GH¢91.7 million in 2025, reversing a GH¢19.4 million loss in the previous year.
“The 2025 net profit before tax of GH¢91.7 million not only erased a GH¢19.4 million loss posted the previous year, but it is the highest profit made by the company,” Mr Abradu-Otoo said.
Gross profit margin improved from 1.61% in 2024 to 13.96% in 2025, while return on operating assets moved from negative 63.80% to positive 26.29%.
NAFCO also paid GH¢20.3 million in taxes in 2025, its highest annual tax contribution in 16 years.
Despite the turnaround, the company still faces working capital and storage constraints.
That makes the proposed silo investment central to the next phase of NAFCO’s mandate. Higher production alone will not guarantee food security if surplus grain cannot be purchased, stored safely and released when needed.
The 2027 Budget will therefore provide the clearest indication yet of how much government is prepared to commit to expanding Ghana’s strategic grain storage infrastructure.
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