FG concessioned 19 silos complexes, generates N1.3bn

The Federal Government through the Ministry of Agriculture and Rural Development has concessioned 19 out of its 33 silos across the nation to six different Concessionaires for a period of 10 years.

The exercise is expected to generate a minimum of N6 billion in concession fees over the 10 years period from 19 silos while N1.3 billion has been earned as part of an upfront one-off payment.

The Concessionaires are to provide performance bonds as collateral, as a guarantee against non-performance, while the ministry retains the contractual rights to terminate for nonperformance.

Speaking during the handing over ceremony of the silos to successful concessionaires in Transcorp Hotel, Abuja on Tuesday, the minister of Agriculture and Rural Development, Chief Audu Ogbeh, said government established silos complexes and commodity warehouses in various parts of the country to aid the storage of products, stabilise commodity prices, offer relief at emergency period and supply commodities to industries but that for the purpose of ensuring efficient operation and maximum utilisation of the silos, the federal executive council approved twenty of the 33 silos complexes to be concessioned after successful negotiation with preferred bidders.

Addressing the Concessionaires, the Chairman Senate Committee in Agriculture, Senator Abdullahi Adamu expressed hope that the silos are put into proper uses by the Concessionaires.

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