The National Food Buffer Stock Company (NAFCO) posted a dramatic turnaround in 2025, recording a net profit of Ghc91.7 million cedis (US$8.8 million) after reporting a loss of 19 million cedis (US$1.8 million) the previous year, according to the State Interests and Governance Authority (SIGA).

SIGA described the performance as one of the most significant financial recoveries by a state-owned enterprise in Ghana, attributing the turnaround to stronger governance, improved operational efficiency and strategic reforms.

According to NAFCO’s audited 2025 accounts submitted to SIGA, the company’s gross profit margin increased sharply to 13.96 percent from 1.61 percent in 2024, reflecting higher revenues and tighter cost controls.

The company’s return on operating assets also improved significantly, rising from a negative 63.8 percent in 2024 to a positive 26.29 percent in 2025.

NAFCO further contributed 20.3 million cedis ($1.9 million) in taxes to the state during the year, the highest annual tax payment in its 16-year history.

SIGA said the turnaround followed a series of institutional reforms, including the creation of a dedicated procurement department, the strengthening of internal audit and food safety functions, and the reconstitution of the company’s board and its sub-committees.

The authority also credited improved collaboration between the board, management and staff for helping drive the recovery.

As part of efforts to strengthen corporate governance, NAFCO’s board has approved the convening of the company’s first annual general meeting since its establishment in 2010.

Beyond its financial performance, NAFCO continues to play a key role in Ghana’s food security system by purchasing and storing food commodities, helping to stabilise prices, reduce post-harvest losses and support smallholder farmers.

The company also supplies food for government programmes, including the Free Senior High School feeding programme and national food reserve initiatives.

Its nationwide storage infrastructure and food reserve operations have become increasingly important as authorities seek to shield consumers from food supply disruptions and price volatility.

“NAFCO’s achievement is a compelling demonstration of what Ghanaian public institutions can accomplish when governance principles are rigorously applied,” SIGA Director-General, Michael Kpessa-Whyte, said in a statement.

“It is a model we call upon all specified entities to emulate.”

SIGA said it would continue to strengthen oversight of state-owned enterprises to improve accountability and ensure public investments deliver greater value to citizens.

The authority added that NAFCO’s performance demonstrates how governance reforms and operational discipline can transform the fortunes of public institutions while advancing broader national development objectives.