2025 was a turning point, says Abradu-Otoo as NAFCO posts record GH¢91.7m profit
The National Food Buffer Stock Company (NAFCO) has recorded its highest profit in 16 years, posting a Net Profit Before Tax of GH¢91.7 million for 2025.
In 2025, the National Food Buffer Stock Company (NAFCO) achieved its highest profit in 16 years, recording a Net Profit Before Tax of GH¢91.7 million. This marked a significant reversal for the company, which had suffered a loss of GH¢19.4 million the previous year. CEO George Abradu-Otoo presented the company's annual review at its first-ever Annual General Meeting, declaring 2025 as a landmark year in NAFCO's history.
Abradu-Otoo highlighted that NAFCO had only previously recorded profits in 2018, 2019, 2020, 2022, and 2023, with the previous highest profit before 2025 amounting to just GH¢2.8 million. The company's gross profit margin experienced a remarkable surge from 1.61% in 2024 to 13.96% in 2025. Additionally, NAFCO's return on operating assets improved from a negative 63.80% in 2024 to a positive 26.29% in 2025, reflecting a notable enhancement in the utilization and management of the company's assets.
In terms of taxation, NAFCO paid an unprecedented GH¢20.3 million in taxes to the state in 2025, representing the highest annual tax contribution in its 16-year existence. Abradu-Otoo attributed NAFCO's turnaround to structural reforms and improved corporate governance, including the establishment of dedicated departments for procurement, internal audit, food safety, and the reconstitution of the Board and its sub-committees.
These initiatives, coupled with the revitalization of NAFCO's regional operations - with all 16 regional offices now operational thanks to the provision of vehicles, office equipment, and additional staff - contributed to the company's financial success. Furthermore, NAFCO revamped the National Food Reserve Programme, receiving an initial GH¢100 million in government funding by December 31, 2025.
The company stocked 36,597 bags of maize, 21,287 bags of rice, and 5,982 bags of gari in warehouses nationwide and supplied 18 different non-perishable food commodities to 733 second-cycle institutions under the Free SHS program. However, despite these achievements, Abradu-Otoo acknowledged that NAFCO still faces challenges related to working capital.
He stated that while liquidity remains adequate but marginal, measures are required to create a stronger buffer and reduce risk. Abradu-Otoo summarized 2025 as a turning point for NAFCO, emphasizing the company's financial gains, improved supplier payments, regional development, and the highest tax contribution to the state. He concluded by stating that NAFCO has consolidated its position and demonstrated what is possible, with plans to continue building upon these successes.
Written by urgent.news from MyJoyOnline Ghana's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
