BoI, Kaduna partner on N1.5tr investment plan

The Bank of Industry (BoI) has expressed its readiness to key-in into the Kaduna State Government’s five-year economic and investment development plan.

Governor of Kaduna State,Mallam Nasir el-Rufai, while unveiling a five-year N1.5 trillion economic blueprint anchored on effective exploitation and utilisation of the state’s abundant natural resources, explained that the state government hopes to partner with the private sector to provide N800 billion out of the investment plan.

BoI Acting Managing Director, Waheed Olagunju while speaking on the sidelines of the event, noted that if effectively implemented, the investment plan was capable of improving the business climate of the state with a view to enhancing the capacity of entrepreneurs to meet the bank’s risk acceptance criteria and ability to access credit facilities.

In particular, he said the bank would play an active role in the realization of the N800billion investment portfolio the state seeks to galvanize from the private sector.

He said: “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.

“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.”

As part of the deals with the state, Olagunju suggested that payment for transaction between Kaduna-based manufacturers and the state government could be domiciled with the bank.

The BoI boss also averred 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 galvanizing economic and business activities include provision of adequate infrastructure, prompt issuance of certificate of occupancy and provision of incentives for industrialists.

While urging all the states of the federation to emulate the kaduna state investment model, Olagunju explained that improving the internally generated revenue of the states would not only reduce reliance on revenue from the Federation Account, but also boost the nation’s quest for rapid industrialisation.

He said,”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 PAYEE task goes to the state government. So, the more jobs a state government is able to create through those private sector enterprises, broadens the taxable base of government and enhance their internally generated revenue.”

The State governor, Mallam Nasir el-Rufai while unveiling the five years economic and investment plan at the state capital, Kaduna, insisted that all hands must be on the deck to exploit the state’s potential for the good of the people.

According to him, the plan reflects the desire to restore Kaduna State to its lost glory through a planned, order.y and coherent development of the state.

He said the goal of the plan was 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.