Ghana’s food security is facing a critical challenge as persistent problems within the National Food Buffer Stock Company (NAFCO) threaten to destabilize the country’s agricultural supply chain. Over the years, food suppliers have been left waiting for millions of cedis owed to them, a situation that escalated into public protests and firm demands for payment. The recent arrest of former NAFCO CEO Abdul Hannan Wahab by the Economic and Organised Crime Office (EOCO) on allegations of mismanagement and procurement irregularities marks a significant development in the ongoing effort to address these deep-rooted issues.
In July 2023, the frustration of food suppliers boiled over when they spent a night at NAFCO’s premises, demanding clearance of GH¢270 million owed to them. The suppliers’ resistance to leave without payment came after enduring more than two years of delayed settlements. They highlighted the harsh reality that while the owed amounts remained stagnant, their operational costs and interest rates were increasing, exacerbating their financial burden. This standoff not only exposed the vulnerabilities in the buffer stock system but also highlighted its ripple effects on Ghana’s food supply chain.
Public Policy Analyst Bismark Peter Kwofi of the Institute for Liberty and Policy Innovation (ILAPI) emphasizes that the core problems stem from a lack of transparency and accountability at NAFCO. Between 2017 and 2022, NAFCO reportedly procured food supplies worth GH¢2.7 billion, yet detailed records concerning purchases, storage, and supplier details remain largely undisclosed. While government allocations have grown significantly—from GH¢81 million in 2017 to GH¢726 million in 2022—the absence of clear and consistent reporting fuels suspicions of inefficiency and mismanagement.
Further scrutiny reveals procurement irregularities that cannot be ignored. The 2021 Auditor-General’s report showed that NAFCO engaged 99 unlicensed firms to supply food for the Free Senior High School program, with payments totaling GH¢42.71 million in just two years. Such lapses in oversight and adherence to procurement laws weaken the integrity of the buffer stock system and diminish public confidence. Additionally, substantial debts owed to suppliers—over GH¢203 million as of mid-2023—persist despite partial settlements amounting to GH¢500 million in 2022.
The official stock levels held by NAFCO do not align with the procurement volumes, calling into question the effective management of national food reserves. In 2023, data indicated only 12,418 metric tonnes of maize and 500 metric tonnes of rice in stock—figures that seem modest relative to the financial outlays on supply acquisitions. These inconsistencies suggest systemic flaws including information gaps, weak oversight, and limited engagement with stakeholders such as farmers and civil society organizations.
ILAPI proposes several key reforms to salvage the buffer stock system and protect Ghana’s food security. Recommendations include the regular publication of audited procurement and inventory reports to enhance transparency. The establishment of independent oversight bodies involving civil society and farmer associations would foster accountability and stakeholder trust. Furthermore, adopting digital tracking tools for real-time monitoring of stock levels and distribution could improve efficiency and reduce opportunities for mismanagement. These measures are essential to restore public confidence, strengthen food security, and uphold fiscal responsibility in Ghana’s agricultural governance.
Source: Ohemaa Adusi-Poku