The National Food Buffer Stock Company (NAFCO) in Ghana has reported a record profit of GH¢91.7 million for the year 2025, marking a significant turnaround after 16 years of losses. This achievement was announced by NAFCO's CEO, George Abradu-Otoo, during the company's first-ever Annual General Meeting. The profit figure represents a dramatic improvement from the GH¢19.4 million loss recorded in 2024.
According to Abradu-Otoo, NAFCO had previously recorded profits in 2018, 2019, 2020, 2022, and 2023, but the highest of those figures was only GH¢2.8 million, making the 2025 result a landmark moment for the company. The improvement in profitability is attributed to various structural and governance reforms implemented by the company. These reforms include the creation of a dedicated Procurement Department, a strengthened Internal Audit Department, and a fortified Food Safety Department.
NAFCO's financial performance in 2025 also shows significant improvements in other key areas. The company's gross profit margin increased from 1.61% in 2024 to 13.96% in 2025. Additionally, its Return on Operating Assets swung from -63.80% to 26.29%, indicating more efficient use of assets. These improvements, according to Abradu-Otoo, are a result of better deployment and management of the company's assets.
The company's tax contribution to the state also reached a record high, with NAFCO paying GH¢20.3 million in taxes during 2025. This is part of the company's efforts to contribute to Ghana's economic growth. The reforms implemented by NAFCO have also led to the operationalization of all 16 regional offices, which were previously under-equipped and under-staffed.
NAFCO plays a critical role in Ghana's food security programs, including the supply of food commodities to schools under the Free SHS programme. In 2025, the company supplied 18 different non-perishable food commodities to 733 second-cycle institutions. It also stocked significant quantities of maize, rice, and gari in warehouses nationwide under the revamped National Food Reserve Programme, which received an initial GH¢100 million in government funding.
Despite the record profit, NAFCO's CEO, George Abradu-Otoo, cautioned that the company still faces working capital challenges. He noted that while liquidity remains adequate, it is marginal, and further measures are needed to build a stronger financial buffer and reduce risk going forward. The company has not announced a specific timeline for further reforms beyond the measures already outlined.
The turnaround in NAFCO's fortunes is significant for Ghana's food security and price stabilization efforts. A financially stronger NAFCO is better positioned to maintain reliable supplies of school feeding and price stabilization stocks. This development also aligns with broader government efforts to boost domestic food and fertilizer supply, including initiatives such as the establishment of a 500,000-tonne organic fertilizer plant and a Sentuo fertilizer plant.
Key points
- NAFCO achieved a record GH¢91.7 million profit in 2025.
- The profit is a result of structural and governance reforms implemented by the company.
- Despite the record profit, NAFCO still faces working capital challenges.
