The National Food Security, Processing and Marketing Corporation (NFSPMC) has reported liabilities exceeding D16 million following its reconciliation of the 2025/2026 Groundnut Trade Season. The liabilities emerged after the corporation identified a significant shortfall in groundnut deliveries. A comparison of expected groundnut deliveries against actual quantities received revealed a deficit of nearly 935,000 kilogrammes, contributing to the financial discrepancy. This substantial shortfall in groundnut deliveries directly impacted the financial health of the season's operations. The findings were part of the NFSPMC's full audit of the season's operations, noting critical areas for improvement.
Groundnut Season Financial Overview
More than D1.79 billion was disbursed nationwide to Cooperative Produce Marketing Societies (CPMS) and private traders for groundnut purchases during the 2025/2026 season. This substantial financial outlay shows the scale of the groundnut trade and the importance of accurate record-keeping and delivery. Kwinella CPMS registered the highest individual liability, owing in excess of D1.87 million, a figure that significantly contributed to the overall D16 million deficit. Njayel and several other cooperatives also reported significant groundnut shortages, further exacerbating the financial discrepancies identified by the audit. The total disbursements represent a substantial investment in the season's groundnut trade operations, making the reported liabilities particularly impactful. The identified shortfalls by specific CPMS entities indicate a pattern of delivery issues across various regions, pointing to systemic challenges in groundnut collection and verification.
Understanding Cooperative Liabilities
Some Cooperative Produce Marketing Societies (CPMS) recorded operational losses, which were fully absorbed through the application of a 1% tolerance allowance and the retention of commissions. This mechanism ensured that these specific societies did not incur any outstanding balances owed to the National Food Security, Processing and Marketing Corporation (NFSPMC). These measures were designed to mitigate minor discrepancies in groundnut deliveries, providing a buffer for small variances.
Conversely, other CPMS experienced losses of a magnitude that exceeded the compensatory capacity of the 1% tolerance allowance and the retained commissions. For these societies, the established allowances proved insufficient to offset the significant groundnut shortages, indicating more substantial operational challenges or delivery discrepancies. Consequently, these CPMS entities accumulated outstanding balances, indicating liabilities that remain due to the NFSPMC, directly contributing to the overall D16 million deficit. The differing outcomes highlight the varying degrees of operational efficiency and accountability among the cooperatives.
Payment Systems and Controls
The reconciliation process implemented by the National Food Security, Processing and Marketing Corporation (NFSPMC) included a new system for direct payments to Cooperative Produce Marketing Societies (CPMS) via WAVE mobile money. This change aimed to streamline financial transactions, enhance transparency, and reduce the risks associated with cash handling. In contrast to CPMS operations, private traders recorded zero losses during the season. This was attributed to a payment system where funds were disbursed only after groundnuts underwent screening and were officially accepted at NFSPMC depots, ensuring payment corresponded directly to verified deliveries. This "pay-after-acceptance" model for private traders proved effective in preventing shortfalls and liabilities, offering a potential blueprint for future operational adjustments across all trading partners.
Future Strengthening Measures
The National Food Security, Processing and Marketing Corporation (NFSPMC) has committed to enhancing its operational framework for future Groundnut Trade Seasons. The corporation pledged to continually strengthen its digital payment systems, aiming for more efficient and secure transactions across all partners. In conjunction with this, the NFSPMC stated it would bolster monitoring mechanisms to better track groundnut deliveries and financial flows from the point of collection to final acceptance. The corporation plans to reinforce its financial controls to mitigate risks and prevent future liabilities stemming from groundnut shortfalls, as observed in the 2025/2026 season. These full measures are intended to improve accountability, operational integrity, and ensure the financial sustainability of the groundnut trade for all stakeholders.
