SIGA applauds NAFCO for turning GH¢19m loss into GH¢91.7m profit

The State Interests and Governance Authority (SIGA) has commended the National Food Buffer Stock Company (NAFCO) for achieving what it describes as one of the most impressive financial turnarounds by a State Owned Enterprise in Ghana.

According to SIGA, NAFCO reversed a GH¢19 million loss recorded in 2024 and posted a net profit of GH¢91.7 million in 2025, demonstrating the impact of sound governance, strategic leadership, and effective institutional reforms.

In a statement issued by its Corporate Affairs Unit, SIGA noted that NAFCO's 2025 audited accounts revealed significant improvements across key financial indicators. The company's gross profit margin increased from 1.61 percent in 2024 to 13.96 percent in 2025, reflecting stronger revenue growth and improved cost management.

The statement further indicated that NAFCO's Return on Operating Assets improved from a negative 63.80 percent in 2024 to a positive 26.29 percent in 2025, highlighting enhanced efficiency in the use and management of company assets.

As part of its contribution to national development, NAFCO paid GH¢20.3 million in taxes to the state in 2025, the highest annual tax payment in the company's 16 year history.

SIGA attributed the remarkable turnaround to a series of governance and structural reforms implemented within the company. These included the establishment of a dedicated Procurement Department, the strengthening of the Internal Audit function, the enhancement of the Food Safety Department, and the reconstitution of the Board and its sub committees.

The Authority also acknowledged the strong collaboration between the Board, Management and Staff of NAFCO, which it said played a crucial role in the company's recovery and growth.

In recognition of the achievement, NAFCO's Board has approved the convening of the company's first Annual General Meeting since its establishment in 2010, a move SIGA described as a significant milestone in its corporate governance journey.

Beyond its financial performance, SIGA emphasized NAFCO's continued importance in Ghana's food security framework. The company plays a key role in stabilising food prices, reducing post harvest losses, supporting smallholder farmers, and implementing critical government interventions such as the Free Senior High School feeding programme and National Food Reserve Initiatives.

Through its extensive storage facilities and food reserve operations, NAFCO continues to safeguard millions of Ghanaians against food supply disruptions and market volatility.

Commenting on the achievement, SIGA Director General, Prof. Michael Kpessa Whyte, said NAFCO's success demonstrates the potential of public institutions when good governance principles are rigorously applied.

"NAFCO's achievement is a compelling demonstration of what Ghanaian public institutions can accomplish when governance principles are rigorously applied. It is a model we call upon all Specified Entities to emulate," he stated.

SIGA reaffirmed its commitment to strengthening corporate governance and accountability across all Specified Entities, stressing that it will continue to provide regulatory oversight to ensure state investments generate maximum value for the people of Ghana while sustaining the gains achieved by NAFCO.