Federal Government Hands Over Concessioned Silo Complexes To Concessionaires

Honourable Minister of Agriculture and Rural Development, Chief Audu Ogbeh has presided over the official handing over ceremony of concessioned silo complexes to concessionaires who had emerged as preferred bidders after a successful negotiation.

Speaking at the event, Chief Ogbeh stated that the Federal Government established the silos complexes and commodity warehouses in various parts of the country with the objectives of promoting products storage, commodity price stability and industrial supply, adding that the concession is to ensure effective management and maximum utilization of the facilities.

Permanent Secretary, Federal Ministry of Agriculture and Rural Development, Dr. Mohammed Bello Umar described the concession of the silo as a step in the right direction, adding: “This will result in optimum and beneficial use and will help to create wealth for the operators, generate employment and stimulate agricultural production in Nigeria”.

Director General, Infrastructure Concession Regulatory commission (ICRC), Engr. Chidi Izuwah remarked: “These assets will now create financial value and aid the transformation of our nation as we are out to ensure that the government reap the full benefit of any public private partnership agreement”.

The transaction process to concession the silo complexes was initiated in August 2013 by the ministry, statutorily overseen by the infrastructure concession regulatory commission (ICRC) with support from the world Bank ans the ministry of finance.

The concession term is for a period of 10 years, during which the concessionaires will operate and maintain the silo complexes under the supervision of the ministry and ICRC. The concessionaires will compensate the government through a fee structure broken down into components.

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