BoI, Jigawa Sign MoU To Launch N6bn MSME Growth Fund

The Bank of Industry (BoI) and the Jigawa State Government have signed a Memorandum of Understanding (MoU) to create a N6 billion MSME Growth Fund. This notable partnership was marked by the inauguration of BoI’s 33rd state office in Dutse. The loans offered through this fund will be available at single-digit interest rates.

Executive governor of Jigawa State, Mallam Umar Namadi, lauded the MoU as a pivotal step in the state’s economic progress. He emphasised the crucial role of SMEs in driving economic growth, providing youth employment, and reducing poverty. “The state government’s commitment to supporting SMEs through this partnership is evident in the N6 billion growth fund, comprising a N4 billion matching fund and a N2 billion managed fund. The Jigawa State Youth Empowerment/Employment Agency (JISYEEA) will oversee this initiative. This collaboration aligns with our state’s 12-point agenda and President Bola Ahmed Tinubu’s Renewed Hope Agenda. We appreciate BOI’s confidence in Jigawa and their efforts to bring financial access closer to our people,” stated Governor Namadi.

BoI managing director, Dr. Olasupo Olusi, highlighted the significance of the partnership in his welcome address. Represented by the executive director of corporate services, Mr. Usen Effiong, Dr. Olusi praised Governor Namadi’s initiative to establish the N6 billion MSME Growth Fund and his support in setting up BoI’s office in Dutse.

Dr. Olusi also commended Governor Namadi for his leadership and the economic advancements achieved under his administration. He acknowledged the state government’s provision of a purpose-built property and two years’ rent, which facilitated the seamless establishment of the Jigawa State office. He also emphasised the importance of the N4 billion Matching Fund and N2 billion Managed Fund in unlocking the state’s economic potential.

“This collaboration is historic,” Dr. Olusi remarked. “Providing financial support to MSMEs across Jigawa’s 27 local governments will boost the manufacturing sector and support their value chains.

BoI and the Jigawa State Government are each contributing N2 billion for the Matching Fund, with an additional N2 billion from the state for the Managed Fund. These funds will fuel entrepreneurship, support startups, and enable existing businesses to thrive.

We believe in the resilience and potential of Jigawa State’s entrepreneurs.”

The commissioning of the Jigawa State office increases BoI’s physical presence to 33 state offices.

“This establishment is already yielding positive results, with loan approvals for financial interventions of about N2 billion for indigenous companies and another N2.5 billion under review. The Rural Area Program for Investment and Development (RAPID) has 1,621 applications at advanced review stages, targeting businesses in rural areas,” Dr. Olusi noted. In his concluding remarks, the managing director invited all stakeholders to actively engage in the partnership, emphasising the importance of collaboration for the success of the initiative. “Together, we can build a Jigawa State where innovation thrives, businesses flourish, and prosperity knows no bounds.”

The ceremony was attended by prominent figures, including the deputy governor of Jigawa State, Engr. Aminu Usman; the secretary to the state government, Malam Bala Ibrahim, and other senior government officials.

The BoI management was represented by the executive director of Micro, Small, and Medium Enterprises (MSMEs), Mr. Omar Shekarau; chief economist and head of strategy and research, Dr. Rislanudeen Mohammed, and divisional head of MSME North, Mr. Sanusi Gidado.