PH, An Emerging Grain Hub

The Federal Government’s decision to site a grain hub in Port Harcourt, the Rivers State capital, is indeed heart-warming and has come at the appropriate time. This gesture projects the state to the outside world that it is safe for business. No state has an integrated and comprehensive security architecture like what Governor Nyesom Wike has put in place in Rivers. We commend and appreciate the President Muhammadu Buhari’s administration for the worthy decision.
The Minister of Agriculture and Rural Development, Mohammed Abubakar, disclosed this after the last Federal Executive Council (FEC) meeting. Abubakar revealed that Port Harcourt had been chosen as the hub for the 25,000 metric tonnes of wheat expected from Ukraine, as Russia also extended its supply to the country through a United Nations arrangement.
A grain reserve is a government stockpile of grain for meeting future domestic (and sometimes international) needs. The government sets aside a part of the public funds to buy these grains and invests in building giant silos that are used for the proper storage of the grains. Besides their primary function of ensuring the year-round availability of food in the event of emergencies, the SGR can also help in price modulation.
As part of the Black Sea Grain Initiative, Ukraine exported 6.9 million tonnes of wheat, 20 per cent of which were sent to African countries. Out of this, Nigeria will get about 1.8 per cent. Some 2.67 million tonnes of wheat, or 43 per cent, were transported to the poorest countries and those with incomes below the average.
The grain initiative will allow Ukraine to remain a top agrarian nation and will allow Ukrainian farmers affected by the Russian war, which started more than a year ago, to sow and be able to receive income from their harvest. They launched the initiative on July 22, 2022, with the first bulker carrying Ukrainian food commodities leaving the port of Odesa on August 1.
The hub would boost economic activities in the “Garden City” and beyond and create job opportunities for the teeming unemployed youths in the state. It is, therefore, necessary for the Federal Government to quickly utilise this opportunity to increase activities in Rivers’ ports by upgrading their facilities to accommodate bigger vessels.
Beyond creating jobs and boosting the economy, grain hubs from Ukraine to Nigeria and other African countries will be helpful in case of emergency and even for donations to other countries. Ukraine intends to develop two or three hubs in Africa. If this is well implemented, it would be a practical step towards businesses reaching new heights in Rivers and, of course, Nigeria, and the entire African continent.
Notwithstanding the situation Ukraine finds itself in, it can still reach out a hand of friendship, not just to Nigeria but to other African countries. This shows superhuman courage, and we applaud their generosity and commend them. We implore other nations capable of performing a similar feat to do likewise.
Ukraine and Nigeria have a long-standing relationship. Both countries have been doing business together, especially in the agriculture sector. Over 30 per cent of our agricultural businesses are with Ukraine, especially in wheat, fertiliser, and other grains. Some victims of the war in Ukraine are many Nigerian students, whose studies have been interrupted by the war.
Over the years, the embattled country has built up real specialisation in many disciplines, and Nigerian students are the beneficiaries. By this token, we believe that the relationship between both nations will be strengthened. We urge Nigeria to do its best at the multilateral level to bring the war to a rapid end.
Development of the grain hubs will make it possible to bring high-quality grains into Nigeria and will influence prices positively. However, of significant worry are the recent incidents of looting of grains in some states. That has brought to the fore the danger ahead, and the need to secure the expected grains from Ukraine.
The 2022 flooding is Nigeria’s worst in the past five years, with 32 out of the 36 states of the country affected. This meant that farmers lost their crops, and prices of food and other agricultural produce have gone up. The grains from Ukraine will ensure that the impact of the rising food prices does not linger for too long so that we can have control of the prices of agricultural produce and other consumer goods.
States like Rivers should cash in on this opportunity and collaborate with the Federal Government in the management and perhaps ownership of the grains to the benefit of farmers and residents of the state. Since agriculture is on the concurrent list, the state government can acquire silos, store grains, and make them available to farmers to augment shortfalls. This will guarantee an all-around availability of food in the state and the nation.