20 firms express interest in Federal Government’s silo concession plan—ICRC boss
The Acting Director, Infrastructure Concession Regulatory Commission (ICRC), Engr Chidi Izuwah, has revealed that about 20 private firms have indicated interest in the Federal Government’s silo concession plan.
Explaining more in an exclusive interview on the sidelines of the signing of new MoU between the Federal Government and John Deere Tractor Manufacturing Company for the supply of 10,000 tractors, he said concessioning the Silos will deepen private sector participation in driving the ongoing agro-revolution in the country.
On the Tractor supply deal, Izuwah averred that the move would improve the management of grains and reduce post-harvest losses and further create wealth for farmers involved in grains production.
He said “We have about 30 silo complexes built by the Federal Government in the country and some of them are under-utilised and abandoned”.
ICRC boss further clarified that whereas the federal government would continue to manage between two to four of the Silos for strategic grains reserve, “the concession would last for 10 years”.
“We have worked with the strategic grains department of the ministry to run a competitive and transparent process to bring in private sector partners to come in and take over the silos, refurbish them and put them to use for post-harvest management.
“This will significantly change the agricultural value chain because the government doesn’t have enough money to run them in terms of filling them with grains.”
“We are going into a Public Private Partnership to bring some of the best people in the world to take over these silos and run them to the best for the country. This was started by the last administration and this administration continued with it because they saw the transparency of the process.
“We have certified it now; so, hopefully, within the next one month, it will go to the Federal Executive Council by law to be approved; and once it is approved, we will reach commercial close and begin the implementation.
“I believe that within the next six months to one year, we will see the impact; the idea is to catch the next harvest season. This will improve service delivery and stop loss of grains.
“Of the about 30 silos, 20 are being given out as concession; so, there are about 20 firms involved in the concession for now, but the government kept about two or three of those silos for strategic grains reserve.
“If there is a food security issue somewhere, the government can release grains from there to serve the people. Concession is not transfer of asset. The asset remains the property of the government of Nigeria,” Izuwah noted.
