Ghana's National Food Buffer Stock Company (NAFCO) reported a net profit of GHS 91.70 million in 2025. This achievement marks a substantial financial turnaround from a GHS 19 million loss recorded in 2024. The State Interests and Governance Authority (SIGA) hails this as one of the most remarkable recoveries by a state-owned enterprise in Ghana.
The significant profit is a result of improved operational performance, as detailed in NAFCO’s 2025 audited accounts submitted to SIGA. The company saw strong improvements in profitability, how it used its assets, and its tax contributions. This positive shift is attributed to disciplined governance, strategic leadership, and institutional reforms.
This turnaround aligns with Ghana's broader efforts to improve the financial health and efficiency of its state-owned enterprises (SOEs). Many SOEs have historically struggled with financial losses, weak management, and operational inefficiencies, placing a burden on public finances. NAFCO's recovery provides a compelling case study for other public institutions to emulate.
“The State Interests and Governance Authority commends the National Food Buffer Stock Company for one of the most remarkable financial recoveries ever recorded by a State-Owned Enterprise in Ghana,” SIGA stated. Prof. Michael Kpessa-Whyte, Director-General of SIGA, added, “NAFCO’s achievement is a compelling demonstration of what Ghanaian public institutions can accomplish when governance principles are rigorously applied.” He urged other Specified Entities to follow this model.
NAFCO’s gross profit margin increased sharply from 1.61% in 2024 to 13.96% in 2025. This indicates a strong focus on cost control and better revenue generation. The return on operating assets also improved significantly, moving from a negative 63.80% to a positive 26.29%. This shows that NAFCO is now using its assets much more effectively.
The company also contributed GHS 20.30 million in taxes to the State in 2025. This is the highest annual tax contribution in NAFCO's 16-year history. SIGA highlighted key internal reforms supporting this success, including a dedicated Procurement Department, a stronger Internal Audit function, and a revitalised Food Safety Department. The reconstitution of NAFCO's Board and its sub-committees, along with good working relationships among staff and management, were also crucial factors.
This strong performance from NAFCO will likely intensify discussions about the importance of governance in public institutions' financial health. Observers will be watching to see if NAFCO can maintain this positive trajectory and if other SOEs can replicate its success. Its continued performance will serve as a bellwether for the government's broader efforts to reform specified entities and reduce their fiscal impact.
Beyond the financial figures, NAFCO plays a vital role in Ghana’s food security system. It manages food reserves, supports local farmers, and works to reduce post-harvest losses. It also helps stabilise food supply and prices across the country. NAFCO supports important government programs like the Free Senior High School feeding initiatives and national food reserves. Its extensive storage network helps protect millions of Ghanaians from sudden food shortages. While profitability is important, NAFCO must also balance commercial efficiency with its public mandate to ensure national food security. This balance remains a critical challenge for such institutions.