The Jigawa State government has signed a Memorandum of Understanding (MoU) worth 6 billion naira with the Bank of Industry (BOI) to improve the economic status of the state’s citizens.
The formal signing of the MoU took place Tuesday at the Government House in Dutse, marking an important milestone in the state’s economic growth and development.
The BOI delegation was led by Executive Director of Corporate Services, Mr Usen Effiong, representing the bank’s managing director.
This partnership aims to provide soft loan access to medium- and small-scale businesses in Jigawa State, demonstrating the state government’s commitment to fostering economic growth and entrepreneurship.
The MoU will include the creation of a 4 billion naira matching fund and a 2 billion naira managed fund.
Under this arrangement, the Jigawa State government will provide 2 billion naira, which the BOI will match with an additional 2 billion naira, while the Jigawa State government is contributing another 2 billion naira for the managed fund.
Mr Effiong said the collaboration positions Jigawa State among BOI’s strategic partners, providing essential financial services to support business activities and enhance value chains, among other benefits.
“With the signing of this MoU today, Jigawa joined the league of other strategic partners of BOI in bringing deliberate finance services to business activities to support the value chain and reduce dependency on neighboring states for finished goods,” he said.
He highlighted the role of the Jigawa State empowerment and employment agency in assisting the bank through its training programmes, aimed at minimising challenges associated with MSMEs.
He stressed the bank’s delight at Jigawa State’s progress, saying BOI has already provided 2 billion naira to indigenous companies in the state, with another 2.5 billion naira in the pipeline. Additionally, BOI’s Rural Areas Programme for Investment and Development (RAPID), which is aimed at supporting rural industries and mitigating rural-urban migration, has 1,621 applications currently under review in Jigawa State.
Governor Namadi expressed his pleasure at reaching this milestone, reiterating his resolve to support MSMEs in Jigawa State.
He emphasised that MSMEs are vital for providing employment and livelihoods for many people. The governor noted that this collaboration aligns with President Tinubu’s Renewed Hope agenda and his administration’s 12-point agenda, bringing financing sources closer to the people of Jigawa.
Namadi pledged to execute the MoU in accordance with its terms and conditions, ensuring sufficient funding for small and medium enterprises to expand their operations. He reiterated the state government’s commitment to working with BOI on this journey.
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