Nigeria to generate N6 billion from concessioned silos ― Ogbeh

The Federal Government has disclosed that the country is expected to earn a minimum of N6 billion from concessioned 19 silos over a period of 10 years.

The Minister of Agriculture and Rural Development, Chief Audu Ogbeh disclosed this on Tuesday during the Handover Ceremony of the Concessioned Silos to successful Concentionaries in Abuja

The Minister said the concessionaires will provide performance bonds as collateral, and a guarantee against non-performance, whilst the ministry retains the contractual rights to terminate for non-performance.

Ogbeh noted that the country has 33 silos, the government would retain 6, while 8 would be concessioned at a later date, while 19 has been concessioned.

The 19 concessioned Silo Complexes are in Ado-Ekiti, Akure, Bauchi, Ogoja, Ikenne, Jos, Gaya, Sokoto, Gombe, Makurdi, Ibadan, Ezillo, Bulasa, Kaduna, Kwali, Jahun, Lafiagi. Igbarian and Uyo, others for the management of the National Food Reserves Stocks, while the eight would be concenssioned at a later date.

While noting that the Silo Complexes will further create jobs, stimulate production, operate profitably, create wealth for the farmers, Ogbeh said it would strengthen the growth of the futures market and the application of other financial derivatives, as well as increase export
potentials.

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Also the Chairman, Senate Committee on Agriculture and Rural Development, Senator Abdullahi Adamu, charged the concessionaires to use the silos for the purpose it was concessioned for.

He also expressed optimism that the concessioned silos would attain its objectives.

“We hope that the idea behind concessioning of this silos, it would attain the objectives we are setting out. I say this because I am aware that ever before I knew I would be a senator of the federal republic of Nigeria let alone chairing the Agriculture committee, these silos have been constructed and they have over these years been lying fallow or lying waste.

“For the government to wake up to its responsibilities in this regard and put the silos in to use is commendable.

It is my hope that those whom the trust is placed and who have put their money on the line will put the silos into use and ensure that they do use the silos for the purposes the concession is granted to them, I wish them good tenure and I also hope that they would live up to their financial obligation in the concession.