How Jigawa’s N6bn BOI Deal Is Transforming Rural Enterprise

In July 2024, the Jigawa State Government signed a N6 billion Memorandum of Understanding (MoU) with the Bank of Industry (BOI) to facilitate access to soft loans for medium and small-scale businesses in the state.

The project has so far made a difference, as hundreds of SMEs in rural and urban areas have accessed credit to expand their businesses. Among the recent beneficiaries was the Association of Tipper Operators, Jigawa State Chapter.

The group was offered equipment credits worth over N408 million to enable them to improve their business for more job creation and growth.

Empowering people through their chosen businesses is one of the strategies adopted by Governor Umar Namadi to accelerate growth and development in the state, and the Bank of Industry has emerged as a key partner in achieving this.

Under his 12-point agenda, Governor Namadi has accorded special priority to job creation and poverty eradication, with economic empowerment and skills training as major tools for driving the mission.

Various initiatives and training sessions have been conducted for thousands of people, while existing skill-acquisition centres have been upgraded with modern facilities, and new centres have also been built across the state.

In the initial stage, the MoU facilitated the establishment of a BOI branch in the state capital, Dutse, to ensure the bank’s services are at the doorstep of the people of Jigawa, rather than requiring them to travel to neighbouring states.

Under the MoU, the Jigawa State Government deposited N4 billion, while the BOI contributed N2 billion, mainly to help businesspeople in Jigawa access financing to enhance their businesses.

The signed MoU has enabled the BOI to eliminate much bureaucracy and many barriers, domesticate some guidelines to address Jigawa State’s peculiarities, and create an enabling environment for rural and urban businesspeople, including rural women and youth entrepreneurs.

According to the Executive Director, Small and Medium Enterprises (SMEs) at the Bank of Industry, Alhaji Shekarau Umar, the N6 billion MoU signed with the Jigawa State Government is the largest MoU the bank has signed with any state government.

He stated that for the last 13 years, they had been writing letters and advocating for the establishment of the bank in Jigawa State, but had received no positive response. However, within six months of engagement with Governor Umar Namadi, the BOI’s dream became a reality.

Presenting the progress report at the handover of the equipment purchased for the Tipper Operators, the Manager of the Bank of Industry, Jigawa State Branch, Mr Mannir Umar Muhammad, said the Jigawa State Government is one of the critical partners with a very good plan and approach to supporting small, medium and large enterprises.

According to the report, under the MoU, over N1.4 billion was disbursed as grants to over 200 enterprises in the state.

The bank had also disbursed over N300 million under rural micro-business grant initiatives, and the programme has positively stimulated the beneficiaries’ economy and productivity.

The equipment grant provided to the Tipper Operators Association included excavators and conveyor vehicles worth over N488 million.

According to the chairman of the Association of Tipper Operators, Jigawa State Chapter, Alhaji Muttala Aliyu, he thanked the governor for the unprecedented empowerment package. He added that the grant would boost their jobs and increase their income, as well as those of others along the value chain of tipper operations.

Speaking while presenting the equipment, Governor Malam Umar Namadi said the empowerment package was part of his government’s effort and determination to reward hardworking men and women, fight poverty, and empower people through their own businesses.

He noted that similar empowerment packages were given to the associations of butchers and road transport workers, among others, and so far, good repayment has been recorded.

“The returns from previous loans have encouraged us to do more, and the Tipper Operators grant is a testament to our commitment and collaborative efforts to promote job creation and poverty eradication,” he said.

“In this mission, we are collaborating with the Bank of Industry and other financial institutions to facilitate access to grants for every business person, individually or in a group, to enhance their business,” the governor stated.

Looking at the strategy they adopted for skills training, empowerment programmes, grant packages, job creation, and poverty eradication, the Director General of the State Directorate of Economic Empowerment and Youth Employment Agency, Dr Habibu Muhammad Ubale, declared that he was very sure and optimistic that in the near future, poverty will be reduced to the nearest minimum level in Jigawa State.

In its effort to complement the government’s effort, the Nigerian Association of Small Scale Industries (NASSI), Jigawa State Chapter, trained over 1,000 skilled youths on how to expand their trades and businesses for greater profits and sustainable growth.

The beneficiaries were trained in modern business management techniques and in how to source grants from financial institutions, particularly the Bank of Industry, where the Jigawa State Government deposited over N4 billion for such purposes.

The training, organised by the association, was held across the state’s three senatorial zones. It targeted beneficiaries of the state government’s skill acquisition and economic empowerment training programme.

According to the NASSI State Secretary, Comrade Dallami Shuaibu, the training was organised to complement the efforts of Governor Malam Umar Namadi in youth empowerment, job creation, and poverty eradication for sustainable growth and development in Jigawa State.

He noted that the beneficiaries were drawn from three categories of youths, including those trained by the state government in hand-pump repair, solar-powered installation, and kiosk retailing.

Comrade Dallami Shuaibu added that the groups, who were trained and empowered by the State Directorate of Economic Empowerment and Youth Employment one year ago, were brought under the entrepreneur training program to show them how to build more robust businesses.

“The main objective of NASSI for organising such training is to see these youths build sustainable, profitable businesses that will create more jobs and wealth in Jigawa State,” he said.

From Startups to Scale-Ups: the N6 Billion MoU appears to be a game changer in boosting SMEs in Jigawa State.

The outcomes and positive impacts of the MoU are evident. However, more measures and initiatives need to be adopted to raise grant performance to an average level and achieve the ultimate goal.