BoI to support manufacturers keying into Kaduna’s N1.5trn plan

The Bank of Industry (BoI) says it will key into the Kaduna State government’s five-year economic and investment development plan, valued at N1.5 trillion.

The development bank also expresses readiness to support manufacturers who are willing to invest in the state.

“The governor said his five years economic plan would cost about N1.5 trillion and that, while the state government would be expected to expend N700 billion, the private sector would provide N800 billion. That is where we come in to support the private sector investors who will be coming to invest in Kaduna, particularly in the manufacturing sector,” said Waheed Olagunju, acting managing director, BoI, at the unveiling of the N1.5 trillion economic blueprint by Kaduna State governor weekend in Kaduna.

Mallam Nasir el-Rufai, Kaduna State governor, unveiling a five-year N1.5 trillion economic blueprint anchored on effective exploitation and utilisation of the state’s abundant natural resources.

According to el-Rufai, the state government hopes to partner with the private sector to provide N800 billion out of the investment plan.Following the state’s initiative, Olagunju said if effectively implemented, the investment plan could improve the business climate of the state, while enhancing the capacity of entrepreneurs to meet the bank’s risk acceptance criteria.
In particular, he said the bank would play an active role in the realisation of the N800billion investment portfolio the state seeks to galvanise from the private sector.”The bank believes that, if the blueprint is religiously followed through successfully in terms of implementation, they would have substantially de-risk the business environment in Kaduna. And by so doing, they will ease the ability of entrepreneurs in Kaduna to meet the Bank of Industry’s risk acceptance criteria, thereby facilitating the access to Its loans,” the BoI boss said.

As part of the deal with the state, Olagunju suggested that payment for transaction between Kaduna-based manufacturers and the state government could be domiciled with the bank, adding that if the governor follows through its plan to source all its procurements from the manufacturing firms based in Kaduna, it would help in boosting the operation of small and medium scale enterprises.
According to him, some of the state’s reform initiatives capable of galvanising economic and business activities include provision of adequate infrastructure, prompt issuance of certificate of occupancy and provision of incentives for industrialists.
“What Kaduna has done should be replicated not only in the 19 northern states, but also the 36 states of the federation. If all the 36 state governors do this at the sub-national level, they will not be depending on FACC every month.

“For example, government is automatically a 30 per cent shareholder in any successful private business. The private business will pay tax, the workers also pay tax. The company tax goes to the federal government; the PAYE task goes to the state government. So, the more jobs a state government is able to create through those private sector enterprises broaden the taxable base of government and enhance their internally generated revenue,” he stated.

On his part, the state governor said the plan reflects the desire to restore Kaduna State to its lost glory through a planned, orderly and coherent development of the state.

He said the goal of the plan is to achieve inclusive economic growth and socio-economic transformation of the state that translates into substantial improvements in the quality of lives of Kaduna citizens through higher productivity and competitiveness.

ODINAKA ANUDU