Eight years after the Federal Government concessioned the National Strategic Grain Reserves, lean harvest still echoes loudly across the nation. The initiative, meant to stabilise food supply and support emergency response, appears to be faltering when it is needed the most. With food prices hitting record highs and millions of people unable to afford basic staples, questions are mounting over the reserves’ functionality and relevance. Many of the silos remain underutilised, poorly maintained, or trapped in bureaucratic red tape. Despite yearly budget allocations and lofty policy statements, the reserve system has struggled to cushion citizens from the deepening food crisis. MOYOSORE SALAMI writes on how the failure of Nigeria’s grain reserve system reflects deeper issues in managing food security in the country.
Recently, the Minister of Information and National Orientation, Alhaji Mohammed Idris, said Nigeria was witnessing a reduction in prices of foodstuffs, which was already bringing relief to the people.
He stated this in Abuja during a session of ministerial briefing, which hosted the Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, and the Minister of State, Senator John Owan Enoh. According to Idris, there was a noticeable drop in food prices, stability in exchange rates, and a gradual decline in the cost of petroleum products.
“As we continue implementing these critical reforms, we are already seeing tangible improvements. Food prices are dropping, exchange rates are stabilising, and the cost of petroleum products is gradually declining,” he stated.
The minister acknowledged that while the reforms had initially caused economic hardships, they were necessary steps toward long-term national prosperity.
“These reforms are not just well-intentioned; they are essential for our country’s growth and development. Let me say that we have crossed the Rubicon, and the pains are gradually easing as the benefits of these policies take effect,” he assured.
The Guardian gathered that the strategic food reserves were designed to serve as a buffer against food crises, as well as stockpile essential grains such as maize, rice, and millet to ensure availability during shortages, emergencies and price volatility, and support farmers through the government’s buyer of last resort programme. Despite its mandate, the reserve system has struggled with inadequate storage capacity, poor maintenance and inconsistent stocking.
While the country possesses a combined storage capacity of 1.3 million metric tonnes across various facilities, including 51 warehouses, the total capacity of 108,000 metric tonnes remains inefficient. To enhance operations, the government concessioned 17 out of its 33 strategic food reserves to private entities, retaining 16 for strategic purposes. However, as of 2023, only six of these government-managed reserves were operational, while several others remained under construction or were facing challenges owing to insurgency and infrastructural issues that keep reserve levels far below optimal capacity.
The situation has been worsened by poor management and inadequate funding, with the reserves often left understocked, especially in the critical months when demand for food staples spikes. The reserves require yearly stocking, maintenance and periodic releases, yet budget allocations have been irregular and insufficient. Across 17 states, only a fraction of these silos are fully operational, with some stalled, damaged or awaiting test runs.
Some of the completed silos include those in Gusau (Zamfara), Okigwe (Imo), Yenagoa (Bayelsa) and Maiduguri (Borno), each with a storage capacity of 100,000 metric tonnes. Majority of the other silos, including the one in Ilesha (Osun), Minna (Niger), Lokoja (Kogi), and Uyo (Akwa Ibom) have a standard capacity of 25,000 metric tonnes.
Despite the ambitious scope, only a handful of these facilities have been completed and made operational. The silos in Minna (completed in 1991), Ilesha (2015), Dutsin-Ma (2013), Gusau (2014), and Yola (2016) are among those confirmed completed. Others such as Lokoja (2019) and Lafia (2017) have also been completed, although their operational status remains unclear.
Some of the facilities, including the one in Bauchi, have been completed but suffer extensive windstorm damage, while the Ilorin silo is currently undergoing rehabilitation. The Irrua silo in Edo State has been rehabilitated but has not been subjected to a test-run.
Security challenges and civil disturbances have also taken a toll on several of the projects. The silos in Maiduguri, Damaturu, and Jalingo have faced work stoppages due to insurgency and unrest. In Yenagoa, topographical complications have stalled construction altogether.
In 2023, the Federal Ministry of Agriculture and Rural Development (FMARD), in collaboration with Alliance for Green Revolution in Africa (AGRA), revealed that the actual stock in the reserve was 100,000 metric tonnes of grains which is merely 7.6 percent of the minimum food security requirement of 1.3 million metric tonnes for six months.
Reports indicate that only a handful of these facilities are fully operational, with many struggling due to outdated infrastructure, funding constraints and mismanagement. Unlike other countries’ food reserves, Nigeria lacks publicly available, real time data on stock levels, releases or purchases which makes accountability nearly impossible.
Investigations revealed that weak government intervention and limited funding have made price stabilisation efforts largely ineffective. In 2021, the government controlled less than 0.4 percent of total grain supplies while traders and merchants held the remaining 99.6 percent
Experts pointed out several challenges, including poor maintenance, political interference, and misallocation of funds. Many silos have been abandoned or repurposed for non- agricultural storage, while others have been left to deteriorate completely. There is also poor coordination among government agencies responsible for food production data and price monitoring. Reports revealed that these facilities are barely filled to capacity, and food releases have been erratic.
Above all, ongoing construction projects at some reserve sites have suffered delays, worsening the problem. However, the recent slight drop in food prices owe partly to the release of a significant quantity of grains from the strategic reserves. Experts warned that this short-term intervention has further depleted the already inadequate stock levels.
A lecturer at the Institute for Sustainable Development, Abiola Ajimobi Technical University, Ibadan, Oyo State, decried the state of food reserve, attributing it to ineffectiveness, corruption, poor policy implementation and a lack of data driven management.
“The food reserve is not functioning or working as it ought to be despite the government concessioning them to private companies. There are quite a number of reasons for that. Was it done through correct bidding and given to those that actually want to do the job efficiently or it was shrouded in nepotism, favouritism and corruption as a whole?”
He asserted that the implementation of the policy might be good on paper but if not properly implemented practically, ‘’it would always hit the rock and that is what is happening right now with no proper policy implementation that governs and guides the process of food reserve system in Nigeria.’’
Afolayan highlighted the failure of key mechanisms such as ‘buyers of last resort, license buyers agent, and direct contract’ which he said were not effectively implemented, leading to weak regulatory oversight. According to him, the concessioned companies prioritise profit over stabilising food supply, hoarding grains and selling at a high price further driving up the food inflation and inflation generally in the country.
The lecturer lamented inefficiency in the marketing system, questioning whether private companies are providing true and genuine incentives to farmers to produce more.
“How well are they investing in the infrastructure and the system that were concessioned to them by the government? Is there a high record of them investing in the system? How much was released into the market in the previous years, import rate. What is the impact of inflation on the grain reserve that we have experienced? What guidelines were employed to see how well that this food that was released is affected?”
Afolayan stressed that the major reason for food reserve is to cushion the effect of emergency or fluctuations in the economy, suggesting that reserves should be used not only defensively but also offensively to influence inflation and ensure food security for at least two production seasons.
He outlined critical improvements needed for the food reserve and the importance of severe locations in the country to prevent climate change, extreme prices or irrigate climate change control due to several reasons.
“The structure of the reserve should be an adequate infrastructure in terms of silo systems that help to store grains. There should be proper packaging and pest control measures and the storage infrastructure should be modern. There should be climate control and also the temperature should be regulated,” he said.
According to him, it should not just be about inflow to the reserve system, it should also be about outflow to the market. After the food is well preserved, there should also be timely release, availability, and that is the legal and safe way the government can influence market prices and thereby strongly mitigate the effects of increase in prices and the effects of inflation in the country.
The expert stressed the need for strategic location for the reserves. “There should be a strategic system of reserve, the geographical dimension to where these reserves are located in such a way that they are safe and secure. They should be close to where there is abundant of farm produce, a location that reduces the transportation delay either for an inflow into the strategic system or outflow into the market or the one that also ensures efficiency. There is need to be able to access food reserve for emergencies in situations where there is flooding in an area or insecurity.’’
The lecturer stated that based on reports released by the Ministry of Agriculture between 2009 and 2022, only 40 percent of the reserves’ capacities are being used in terms of infrastructure. He called for a data-driven method in which record is being released as at when due and the releases are to influence market structures, prices and demands.
Afolayan also called for upgrading and expansion of existing storage infrastructure. He stressed the need to stop corruption and be accountable in the inflow of food into the reserve and in the outflow. He craved the use of blockchain technology to track the quantity of grains being stored and sold and at what price.
According to the National Bureau of Statistics (NBS), food inflation hit a staggering 35 per cent in early last year, pushing millions into hunger. The inability to release grains from the reserves to cushion the effect of price increases has further exposed the weaknesses in the system.
Despite these concerns, there has been little action to improve the reserves. Farmers continue to suffer post-harvest losses, while consumers struggle with rising food prices.
Experts noted that a major limitation of the reserve system is its reliance on road transport. None of the country’s silo facility is connected to rail networks, making food transportation costly and inefficient. It also causes delays in delivering grains to storage sites.
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The Minister of Agriculture and Food Security, Senator Abubakar Kyari, during a Joint Senate Committee on the State of the Economy event, said: “I know that a lot of senators have raised concerns about the issue of importation and I think there are also concerns out there. We are also worried about that. We try to protect the local industry and farmers, but at the same time, we are in an emergency situation. I think that just like somebody who is sinking, if you hand him a sword he would grab it, just to come out. This is the situation we found ourselves in now. But it is an interim situation and not something that will be protracted over a period of time.”
According to Kyari, prices would drop significantly if the country intensified production effort in dry and wet seasons. The current problem is not about hoarding but speculations.
“I wouldn’t want to say there is hoarding, but there are speculators in the industry. I am sure they will start bringing out their grains to the market and even when some of these imports start coming, there should be some kind of activities that would lessen the prices of food. On the issue of food reserve, I think a question was asked: Are the grains available? I will say yes, the ones we are about to release are available,” Kyari said.
Last month, the minister emphasised the critical role of food reserves in tackling the growing food security challenges facing West Africa and the Sahel.
Kyari, who was represented by the Permanent Secretary in the ministry, Marcus Ogunbiyi, at the third meeting of the management committee of the Economic Community of West African States Regional Food Security Reserve, held in Abuja, acknowledged the long-term commitment of ECOWAS and its partners, lamenting, however, that the region’s food security situation had worsened due to conflicts, economic instability, and the severe impacts of climate change.
The minister noted the alarming statistics from the December 2024 Cadre Harmonise report, which indicated that “Nearly 34.7 million people are in immediate need of food and nutritional assistance.” He stressed the need for stronger strategies and increased sovereign financing to address food production challenges, manage strategic food storage, and mitigate market volatility.
Really, the food insecurity has worsened in recent years due to conflicts, economic instability, and the devastating impact of climate change.
“These major challenges remind us of the urgent need to strengthen our strategies and response instruments to effectively deal with the food and nutrition crisis affecting our region. They also alert us on the growing need for sovereign financing of our agriculture in general and our response mechanisms to the food crisis in particular.
“This, therefore, calls for a deliberate concerted effort to address food production, strategic food storage, market and price volatility, as well as re-strategise the regional body, especially in the administration and management of the regional food security reserve,” Kyari said at the meeting.
He highlighted the efforts made by the Regional Food Security Reserve since its inception in 2013, which include capacity building, early warning systems, and emergency food assistance. ‘’Since its inception, it has made considerable progress, amassing a stockpile of over 74,000 tons of food stored in various locations across the region, ready for deployment in times of need.’’
The minister called for improvements in the reserve’s operational efficiency, governance, and monitoring systems to enhance its effectiveness in responding to the region’s food and nutrition crises.
A research analyst in Environmental and Economic Resource Centre (EERC), Dr Foluke Olatoye, said the country’s food reserve system was not in good shape, with the government failing to be transparent on its management.
She lamented that the country’s reserves which should serve as a buffer against food shortages and price hikes have become unreliable due to poor management, inadequate storage facilities, and a lack of strategic restocking.
Olatoye noted that while the Federal Government released 42,000 metric tonnes of assorted grains from the National Strategic Food Reserve in November 2024 to curb rising food prices, the limited quantity shows the weak capacity of the reserves to address the nation’s food crisis. She added that the struggle to deploy reserves effectively during crises such as floods or conflicts that disrupt food production worsened food insecurity and made it harder to stabilize prices and protect vulnerable populations.
The research analyst said the economic losses resulting from the country’s weak food reserve were significant and multi- dimensional, noting that over 30 million people were projected to face acute hunger by mid-2025.
“Nigeria’s continuous reliance on food imports due to poor reserve management also puts pressure on foreign exchange reserves. This weakens the naira and increases the cost of living, making the country more vulnerable to global market stocks.”
Beyond these indirect losses, she pointed out that the government is losing an estimated N10.4 billion annually due to what she described as poor concessioning of grain silos.
The expert explained that an efficiently managed food reserve system could help stabilize food prices and reduce inflation.
“When food availability is low due to poor harvests, climate shocks or market disruptions, the government can release reserves to balance supply and prevent price hikes. It would also reduce speculation and hoarding where traders exploit shortages to inflate prices.”
Olatoye further explained that a transparent and well maintained food reserve system would curb artificial scarcity and reduce the country’s dependence on costly food imports which requires better storage infrastructure, transparent distribution mechanisms and policies to prevent corruption in food stock management.
She said the government’s attempt to improve efficiency through the concessioning of the reserves failed due to poor implementation. According to her, one major issue is the delay in handing over these silos since the agreements were signed in 2019 and many concessionaires have yet to take full control due to bureaucratic bottlenecks and unmet conditions, leaving the reserves underutilized.
She also noted that smallholder farmers who are key grain suppliers were excluded from the process, leading to unfavourable pricing and reduced incentives for production.
“Some concessionaires have also failed to maintain and operate the silos properly, resulting in poor storage conditions and waste. Meanwhile, the government has lost huge sums of money annually because the reserves aren’t functioning as planned.”
To fix the broken food reserve system, she urged the government to improve monitoring and ensure that silos operate at full capacity. She stressed the need for modern storage facilities to prevent post-harvest losses and for better coordination between the government and farmers.
“A functioning reserve system depends on a steady supply from local farmers. So, policies should ensure fair pricing and incentives for production. We need a digital tracking system to monitor grain stock levels and distribution in real time, reducing corruption and inefficiencies. A hybrid public-private partnership model could also be explored where private companies manage reserves efficiently under strict government oversight to ensure they serve their primary purpose of food security. If we get these things right, Nigeria can build a resilient food reserves system that stabilizes prices, supports farmers and improves food security for millions of Nigerians,” she said.
An agricultural economist in the University of Ibadan, Dr. Chuks Idiaye, said Nigeria’s food reserve system remained grossly underutilised despite the country’s vast population and growing food demands.
Idiaye said that as of 2020, Nigeria had only about 30,000 metric tonnes of grains in its strategic reserves which were designed to hold up to 1.3 million metric tonnes. This figure represents just a small fraction of the storage capacity and is insufficient to ensure food security in a country of over 200 million people.
“Available data from the Federal Ministry of Agriculture and Rural Development (FMARD) and the Nigerian Economic Summit Group (NESG) show that the country’s reserves are in bad shape. In fact, the NESG disclosed that by 2020, only about 30,000 metric tonnes were stored,” he said.
According to him, the situation has worsened in recent years due to rising insecurity, which has made food production riskier for farmers. “With the insecurity challenges we’ve witnessed where farmers are either unable to access their farmlands or have their produce destroyed or seized, the outlook today would likely be much worse if updated data were provided,” he said.
The Agricultural economist stated that achieving food security requires addressing a number of systemic issues in the agricultural sector. He identified limited market access for farmers, the influence of middlemen who buy produce at low prices and sell at inflated rates in cities, and the poor condition of rural road networks as major areas needing attention. He also identified inadequate storage infrastructure and unreliable power supply as causes of post-harvest losses.
“There is also insufficient investment in processing and value addition, and public policies such as input subsidy programmes are often poorly targeted,” he said.
To reverse current trends, he recommended a multi-pronged approach which include investment in research, high-yielding crop varieties, biotechnology, mechanization, and improved credit access for farmers. He also called for renewed attention to processing, storage infrastructure, rural development, and food price regulation.
According to Idiaye, addressing insecurity and depoliticising agricultural development are essential to long-term sustainability. “There is a total lack of political will to achieve the objective of food self-sufficiency. A lot needs to change if that is to happen,” he said.
A farmer, Saheed Oshin, said: “For the perishable crops, we sell directly to the closest local makers while some go to waste. For crops like cassava, we process into finished edible food. We have indirectly benefited from the government but since the high cost of fuel has affected the cost of logistics, we decided to focus on the host community and state. A lot of the governments do not meet the long term needs of farmers due to lack of awareness and inconsistency in policies.’’
According to him, storage and food reserve facilities are capital intensive which needs private or public long term funding and a peer to peer integrated model that is tailored to each regional or communal crop specification. “Real farmers should engage and peer with a purpose of creating a sustainable food supply chain from farm to factory, farm to food banks, to retail stores, farm to school meal programmes.”
Oshin, who is the founder of GreenableAgtech Limited, added that to preserve the produce better, there is a need for what he called off-grid cold storage plugged with logistics to move perishable crops from farm to each destination. He added that any investor that wants to import such equipment should be given a tariff waiver and tax cut after production. He lamented that 60 percent of post-harvest loss is caused by climate change, bad road network and other factors.
Source: The Guardian