The Governor of Katsina State, Dikko Radda, has launched two significant programs aimed at empowering small and medium-scale enterprises (MSMEs) in the state.
During the launch event held at the Katsina State Secretariat Conference Hall, Governor Radda said the ₦5 billion Katsina State SME Growth Fund and the Dikko Business Development Support (BDS) Corp Intervention Programmes will provide entrepreneurs with financial resources, business development services, and access to markets.
He stressed the importance of MSMEs as the backbone of a thriving economy.
He recognized the connection between economic instability and insecurity, highlighting that by supporting and expanding MSMEs, job creation, poverty reduction, and a stronger local economy can be achieved.
Governor Radda acknowledged the challenges faced by the government in developing these initiatives, including limited access to finance, inadequate business development support, and a lack of tailored assistance.
However, he assured the public of his administration’s commitment to addressing these challenges through the implementation of these programs.
The governor also praised the leadership and management of the Katsina State Enterprise Development Agency (KASEDA) for their dedication and the strong foundation they have laid in building a sustainable and thriving economic environment in the state.
To further foster a thriving entrepreneurial ecosystem, Governor Radda outlined several key initiatives, such as conducting an MSME census to gather crucial data on entrepreneurs’ needs and challenges.
Additionally, cluster mapping will be carried out across the 34 local government areas to identify and support business clusters with high growth potentials.
Furthermore, an SME Policy aligned with the National MSME Policy will be formulated.
These programs and initiatives demonstrate the government’s commitment to promoting economic inclusivity, bridging the gap between different socio-economic groups, and fostering social harmony.
By empowering MSMEs, the government aims to create an environment conducive to sustainable economic growth and development in Katsina State.
Others are: launching an Employability Project aimed at enhancing job skills among youths, and organising SME Fairs and Clinics to provide a platform for networking, peer review, and interaction with regulatory agencies.
“Recognising the pivotal role of Common Facility Centres to boost production, Governor Radda’s administration has partnered with the Small & Medium Enterprises Development Agency of Nigeria to renovate, upscale, equip, and take over the running of the Industrial Development Centre (IDC) located in Katsina.
“State-of-the-art equipment has already been provided in areas like tailoring, garment printing, leather works, packaging machines, and agricultural processing machines.
“The access road and other facilities are being upgraded for an official public commissioning soon.
“Plans are ongoing to extend such common facilities to the remaining two senatorial districts based on cluster mapping reports”, Governor Radda noted.
Therefore, he described the Dikko BDS Corp as an intervention program designed to transform the state’s economic landscape. ‘
The governor said the initiative is expected to provide tailored support and comprehensive business development services to MSMEs, particularly in underserved communities.
He added: “It will also equip entrepreneurs with the tools, knowledge, and resources they need to thrive by assisting them with: advisory services, training, facilitating access to financial resources, access to market, legal and regulatory compliance support.
“A total of 136 BDS Corp volunteers, identified across the 34 LGAs (four per LGA), will be equipped and supported to provide on-the-spot advisory services to nano, micro, small and medium enterprises in their local jurisdictions.
“Drawn from the LGA Council staff, the BDS Corp has been trained and will receive continuous training to handle these new responsibilities. The volunteers will also assist KASEDA with monitoring, evaluating, and sending bi-monthly reports on the performance of the entrepreneurs.
In the same vein, the second initiative launched is the Katsina State N5 Billion SME Growth Fund, a matching and managed fund collaboration between the Katsina State Government and Bank of Industry (BOI). Dedicated to fostering the growth and development of SMEs by providing essential financial resources and support, the Fund is designed to:
Provide financial and business development support for SMEs to expand operations, innovate, and compete on a larger scale.
Stimulate economic development, create jobs, and enhance the entrepreneurial ecosystem in Katsina State.
Governor Radda disclosed the Fund’s contribution structure, ₦1 billion managed fund and ₦2bn matching fund from the Katsina State Government.
As a pilot, 10 MSMEs with growth potential have already been identified through a proper needs assessment in each of the 34 local government areas of Katsina. These “low hanging fruit” businesses are expected to generate employment and wealth quickly with the injection of funds”, the governor added.
The governor made it clear that the funds being provided are loans, not grants. He advised entrepreneurs to use the funds wisely to expand their businesses. Additionally, he mentioned that there would be significant interest rate reductions or waivers, with the state covering the associated costs, to alleviate the burden on entrepreneurs.
To ensure the success of the loan program and its repayment, Dikko BDS Corp will offer the beneficiaries comprehensive business development advisory services.
Governor Radda emphasized the importance of responsible loan repayment, as the Fund is designed to be a revolving fund. He stated that timely repayments will ensure the sustainability of the program and provide support for future entrepreneurs.
Speaking at the event, the Director-General of SMEDAN, Charles Odii, recognized the crucial role of MSMEs in Nigeria’s economy and the challenges they face, particularly in accessing finance.
He highlighted that the ₦5 billion MSME Funds are specifically designed to bridge this gap by offering accessible and affordable financing options tailored to the unique needs of MSMEs in Katsina State.
Furthermore, he called upon government agencies, financial institutions, industry leaders, and the wider community to collaborate with SMEDAN in nurturing MSMEs and creating a conducive environment for their success.
We have recently signed an MOU with the Katsina State Government to the tune of One Billion Naira for the development of SMEs in the state”, Odii stated.
Meanwhile, the beneficiaries drawn from the 361 political wards in the 34 LGAs of the state, sworn to help, run, and expand ethical businesses to tackle the unemployment rate in the state.
Earlier in her welcome address, the Director General of the Katsina State Enterprise Development Agency (KASEDA), Hajiya Aisha Malumfashi announced that, the 5 Billion Naira SMEs fund is designed to provide accessible and affordable financial options tailored to the unique needs of the SMEs irrespective of their nature.
This initiative is a testament to our commitment to fostering economic growth and development, innovation and sustainability within the SME system which serves as a cornerstone for our economy.
“Today, in Katsina State, we are taking a decisive step towards bridging the gap with the introduction of 5 Billion Naira into the state economy”, Malumfashi revealed.
