The National Food Buffer Stock Company (NAFCO) recorded a net profit of GHS 91.7 million in 2025. This marks a substantial financial turnaround from a GHS 19 million loss reported in the previous year.
NAFCO also made a record tax payment of GHS 20.3 million to the state in 2025, its highest annual contribution in 16 years. The State Interests and Governance Authority (SIGA) praised this achievement as a significant recovery for a state-owned enterprise.
This impressive performance highlights strong improvements in managing state-owned enterprises (SOEs) within Ghana's economy. Many SOEs have struggled with profitability and efficiency in the past. NAFCO's success provides a positive example for other public institutions under SIGA's oversight, demonstrating potential for financial sustainability.
Professor Michael Kpessa-Whyte, Director-General of SIGA, stated this success demonstrates the impact of rigorous governance principles. He described NAFCO's achievement as a model for all specified entities to follow. SIGA noted that NAFCO's 2025 audited accounts showed its gross profit margin increased from 1.61 percent in 2024 to 13.96 percent in 2025. Its Return on Operating Assets also improved from a negative 63.80 percent to a positive 26.29 percent.
Improved cost management and stronger revenue growth contributed to this financial recovery. NAFCO undertook significant governance and operational reforms. These reforms included establishing a dedicated Procurement Department and strengthening the Internal Audit function. The company also enhanced its Food Safety Department and restructured its Board and sub-committees. A strong working relationship between the Board, management, and staff played a critical role in this success.
The improved financial health of NAFCO has broader implications beyond its balance sheet. The company is crucial for Ghana's food security framework. It helps stabilize food prices and reduce post-harvest losses. NAFCO also supports smallholder farmers and implements government programs, such as the Free Senior High School feeding initiatives. This turnaround ensures continued support for these vital national efforts.
Going forward, NAFCO’s Board has approved convening its first-ever Annual General Meeting since its 2010 establishment. This step aims to consolidate the gains made and promote transparency. SIGA plans to intensify its regulatory oversight to sustain these improvements across all specified entities.
The market will watch how NAFCO maintains this momentum and whether other SOEs can replicate its success. This performance could encourage further reforms in public sector management. It sends a clear signal that state-owned businesses can be profitable with strong leadership and governance.