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Okwe Obi, Abuja
The Federal Government has said it is projecting over N6 billion as concession of 20 silos for 10 years.
Government also said concessionaires will provide performance bonds as collateral, as a guarantee against non-performance, while the ministry will retain the contractual rights to terminate for none performance.
Minister of Agriculture and Rural Development, Audu Ogbeh, disclosed this, yesterday, at the handing-over of certificates to successful concessionaires, in Abuja.
He said: “The Federal Government is expected to earn a minimum of N6 billion in concession fees over the period of 10 years concession period from 20 silos under consideration.
The concessionaire will compensate government through a fee structure broken down into three components. There are upfront one-off payment, an annual fixed value; inflation linked concession fee and an annual share of profit from operations.
“Government retains ownership of the silo complexes and at the end of the concession term, has the option to decide to manage them directly, negotiate extended contracts with the concessionaires, or procure new contracts depending on the performance of the concessionaires.”
Ogbeh, further urged the concessionaires to handle the silos gingerly, and stressed that it would stimulate production and operate profitably.
“We just have an appeal to make which is that you should look after them because they are national assets.
“Silos began long time back, as far back as the era of Muritala Mohammed. Please, let these silos work.
“We have seen sales of government assets. Some are extremely disappointing because they are in disarray while others are totally worn out. Government cannot put such assets in place and hand it over to people who do not know its worth,” he noted.
For effective storage, the minister advised them to use jute bags and alerted them to further look out for aflatoxins which he said are harmful to crops.
“We have a problem with aflaxtoxins. It is getting worse with the rising temperature. When you take over your silos spray them with afla-safe,” he advised.
