The National Food Buffer Stock Company (NAFCO) posted a profit before tax of GH¢91.7 million in 2025, its highest since the company was set up 16 years ago. This figure reversed a loss of GH¢19.4 million recorded in 2024, signaling a sharp financial turnaround.
NAFCO’s Chief Executive Officer, George Abradu-Otoo, said the company’s liquidity position was still a concern despite the profit. He pointed to the acid-test ratio, a measure of the company’s ability to pay short-term debts with its liquid assets, which stood at 1.18 in 2025, up from 1.07 in 2024. “The Acid-Test Ratio of 1.18 remains marginal,” he said at NAFCO’s first Annual General Meeting. The company is aiming for a ratio above 1.5 to reduce financial risks and better meet its short-term obligations.
Abradu-Otoo said government, as the majority shareholder, needed to address working capital management to ensure NAFCO’s financial health over time. The CEO said the company’s gross profit margin rose from 1.61 percent in 2024 to 13.96 percent in 2025. Return on operating assets also improved, moving from negative 63.80 percent to positive 26.29 percent during the same period.
NAFCO paid GH¢20.3 million in taxes in 2025, its largest annual contribution to the state so far. The CEO credited the improved results to structural reforms, including the creation of a dedicated Procurement Department and stronger Internal Audit and Food Safety departments. The reconstitution of the Board of Directors and better cooperation between the board, management, and staff also helped.
“The year 2025 was a turning point,” Abradu-Otoo said. He noted that the company had improved payments to suppliers and strengthened regional operations during the year. NAFCO’s main role is to purchase and store food commodities, support local farmers, and keep strategic food reserves for emergencies and high-price periods.
NAFCO also supplies food to about 733 second-cycle schools under the Free Senior High School programme. The CEO said the company would continue to improve financial and operational management to sustain growth and meet its national food-security mandate.
Despite the record profit, the CEO warned that sustaining progress would require ongoing discipline and sound governance. He stressed the importance of building a stronger financial foundation to avoid risks related to liquidity and short-term obligations.
NAFCO’s turnaround comes amid broader challenges in Ghana’s food supply system. The company’s ability to maintain adequate reserves and support farmers without cash flow problems will remain under close watch. The government’s role as majority shareholder will be critical in addressing these concerns.
The company’s 2025 figures show a significant shift from the previous year’s losses, but the goal to raise the acid-test ratio above 1.5 indicates that financial caution remains a priority. Abradu-Otoo’s comments suggest that while the profit marks a milestone, NAFCO’s leadership is focused on building a more stable financial base for the future.
According to Joy Online.
