Tuesday, October 4Inside Business Africa

Government to revoke non-performing licenses on silo concession

Minister Agriculture and Rural Development, Sabo Nanono, has threatened to revoke the licence of any concessionaire that failed to meet the terms of agreement, nine months after the Federal Government concession 20 silo complexes to private sector operators.

The Government had projected to generate about N6billion from concession fees over a period of 10 years, to which the concessionaires were expected to compensate government through a fee structure broken down into three components, including the upfront one-off payment, an annual fixed value; inflation linked concession fee and an annual share of profit from operations.

To this extent, the “Government retains ownership of the silo complexes and at the end of the concession term, has the option to decide to manage them directly, negotiate extended contracts with the concessionaires, or procure new contracts depending on the performance of the concessionaires.”

Nanono during an inspection tour of facility at the 250,000-metric tonne capacity silos in Jahun area of Jigawa State, disclosed plans by the Federal Government to review the concession of its silos leased to private firms in Nigeria, threatening to revoke the licence of any concessionaire who failed to meet the terms of its agreement.

A statement from the Ministry, quoted Nanono as saying: “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 did not comply.”

The Minister noted that the silos were provided in different parts of the country for strategic reserves, and enhance the Government’s food security programme, 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, Mohammed Abubakar, represented by the Secretary to the Government, Adamu Fanini, who accompanied Nanono on the tour, said the state would key into the Federal Government’s policies and programmes in the agricultural sector, assuring that Jigawa would leverage these to create jobs and grow the state economy.

In his brief on the facility to the Minister, the Regional Director, North West, Olusegun Owolabi, said all the activities at the site were being handled by the concessionaire, Martrix Ville Company, from staffing, maintenance, to and purchasing of grains for storage under the supervision of the Ministry.The Minister also inspected the 25,000MT Gaya Silo Complex in Gaya Local Government Area of Kano State.

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