The National Food Buffer Stock Company (NAFCO) in Ghana has reported a significant profit before tax of GH¢91.7 million for the year 2025. This achievement marks a remarkable turnaround from the GH¢19.4 million loss recorded in 2024. According to Mr. George Abradu-Otoo, the Chief Executive Officer of NAFCO, the company's financial performance represents the highest profit recorded since its establishment 16 years ago.
Despite this impressive financial performance, NAFCO is seeking to strengthen its liquidity position. Mr. Abradu-Otoo noted that the company's liquidity position remains adequate but its short-term financial buffer is still marginal. The company's acid-test ratio, which measures its ability to meet short-term liabilities using its most liquid assets, stood at 1.18 in 2025, up from 1.07 in 2024. However, the company is targeting an acid-test ratio above 1.5 to reduce financial risks and strengthen its ability to meet short-term obligations.
The company's financial turnaround is attributed to structural reforms implemented by the management. These reforms include the establishment of a dedicated Procurement Department, strengthening of the Internal Audit Department, and improvements in the Food Safety Department. Additionally, the reconstitution of the Board of Directors and its sub-committees, alongside improved collaboration between the Board, Management, and staff, have contributed to the company's improved performance.
NAFCO's gross profit margin increased significantly from 1.61 per cent in 2024 to 13.96 per cent in 2025. The company's return on operating assets also improved from negative 63.80 per cent to positive 26.29 per cent. Furthermore, NAFCO paid GH¢20.3 million in taxes to the State during the year, representing its highest annual tax contribution. This significant increase in tax contribution demonstrates the company's improved financial health.
As part of its mandate, NAFCO is responsible for purchasing and storing food commodities, supporting local farmers, and maintaining strategic food reserves for emergencies and periods of high food prices. The company also supplies food to approximately 733 second-cycle institutions under the Free Senior High School programme. Mr. Abradu-Otoo emphasized that sustaining progress would require continued operational discipline, sound governance, and a stronger financial foundation.
The company's CEO highlighted that 2025 was a turning point for NAFCO, with improved payments to suppliers and strengthened regional operations. Mr. Abradu-Otoo expressed confidence that the company would continue to strengthen its financial and operational management to sustain its growth and deliver on its national food-security mandate. The company's progress is seen as a positive development for Ghana's food security and economy.
Going forward, NAFCO aims to build on its achievements and address its financial challenges. The company's management is committed to implementing measures to improve its liquidity position and ensure its financial sustainability. With a stronger financial foundation, NAFCO is well-positioned to support Ghana's food security initiatives and contribute to the country's economic growth.
Key points
- NAFCO recorded a profit before tax of GH¢91.7 million in 2025.
- The company's acid-test ratio stood at 1.18 in 2025, with a target of above 1.5.
- NAFCO paid GH¢20.3 million in taxes to the State during 2025.
