CBN INTERVENTION IN BAUCHI AND GOMBE STATES
The real sector development initiatives of the Central Bank of Nigeria (CBN) were introduced to stimulate and sustain growth in key sectors of the economy, revive moribund sectors, empower the youth population, explore the untapped potential in various economic landscapes, and enhance foreign exchange inflow.
These interventions have significantly contributed to the overall growth of the Nigerian economy, as shown by available data. In response to the COVID-19 pandemic, the Central Bank of Nigeria also granted loans to households and small businesses to cushion the deleterious effects of the pandemic across the country.
In recognition of the importance of access to finance as a key factor to innovation and development of the economy, the CBN’s development finance interventions are targeted at priority segments, which include the following:
1. Agriculture
2. Manufacturing
3. Infrastructure
4. HealthCare
5. Youth and Entrepreneurship Development
6. Export
7. Micro, Small and Medium Enterprises (MSME’s)
In Bauchi and Gombe states, the CBN has financed 23,140 and 26,532 projects respectively. Below are highlights from few beneficiaries of CBN’s interventions in both States.
BAUCHI STATE
Name: Yakubu Mohammed
Intervention: Targeted Credit Facility
Sector: MSME
Location: Bauchi, Bauchi State
Yakubu Mohammed is the CEO of Yakubu Optical Services situated in Bauchi, the capital of Bauchi State. He accessed the CBN Targeted Credit Facility (TCF) to expand his optical shop which had started struggling as a result of the harsh economic climate brought about by the COVID-19 pandemic. Mr. Mohammed’s cousin apprised him of the TCF intervention at a crucial time, and he took advantage of the opportunity by applying for the loan which was graciously approved.
With the facility, Mr. Mohammed upgraded his business from the small optical retail shop to a standard optical services centre. He was able to employ 10 new members of staff, out of which 3 are opticians.
Name: Suleiman Umar
Intervention: Agri-Business Small Medium Enterprise Intervention Scheme (AGSMEIS)
Sector: MSME
Location: Bauchi, Bauchi State
Suleiman Umar, a beneficiary of CBN’s AgSMEIS loan, is an indigene of Bauchi State. He had honed his skills in woodcraft as an apprentice under his uncle from a tender age. He acquired the sobriquet “Sule furniture”, which was how his family and friends refer to him since he began his own furniture business.
He accessed the AgSMEIS loan to enable him to expand his business. The facility helped him gain more equipment for better output and increase his staff strength by 7. He currently has 5 apprentices in training. Mr. Umar expressed his gratitude to the Federal Government of Nigeria and the Central Bank of Nigeria for the initiative which has enabled him to increase his productivity.
Name: Tiamin Multi-Services Global Limited
Intervention: Private Sector-Led Accelerated Agriculture Development Scheme (P-AADS)
Sector: Agriculture
Location: Bauchi, Bauchi State
As part of efforts to boost local rice production and bridge surging demand, the Central Bank of Nigeria took deliberate steps to expand financing to rice projects and other focal commodities.
Tiamin Multi-Services Global Limited is one of the pioneer beneficiaries of CBN’s P-AADS intervention. The company was initially in the construction industry but shifted its operational focus to the agriculture value chain in view of the opportunities identified.
In 2017, Tiamin Multi-Services Global Limited established an integrated rice-milling factory with a daily capacity of 320 metric tons. As the demand for rice grew, the company expanded to a high-tech ultramodern integrated Rice-Mill of 600MT daily capacity, on an 8-hectare land in Bauchi. In 2020, the Central Bank financed Tiamin Multi-Services Global Limited under the P-AADS, for the cultivation of 10,000 hectares of rice farmland for backward integration, to feed into the paddy requirements of their integrated mills.
The project targets reducing poverty and providing employment opportunities for over 800 direct staff and up to 2000 casual staff.
GOMBE STATE
Name: Gombe State Government
Intervention: Health Sector Intervention Facility
Sector: Health
Location: Gombe State
The Gombe State Government is one of the beneficiaries of the CBN Health Sector Intervention Facility, which was accessed in 2021. The loan was granted for the purpose of constructing and remodelling the General Hospitals in Kumo, Kaltungo and Bajoga.
The construction of a new General Hospital became necessary in Kumo, the headquarters of Akko Local Government Area, due to the poor and substandard construction of the existing hospital structure. The renovation of the General Hospitals in Kaltungo and Bajoga was targeted at transforming the health facility into a special referral centre that will provide quality medical services to the populace within and outside the State.
At 80% completion, the project has tremendously impacted the economy, healthcare and livelihood of the communities because of the direct and indirect jobs created, and the access to standardized healthcare services.
Name: Liatu Suleiman
Intervention: AgSMEIS
Sector: MSME
Location: Gombe State
Liatu Suleiman, an indigene of Gombe State and the CEO New Horizon M&B Salon and Spa located at Federal Low cost housing in Gombe, is a beneficiary of CBN’s AgSMEIS loan.
With the loan, she was able to purchase modern equipment for her salon, various products for sales and makeup, and expand the business to include a well-equipped spa service. The staff strength increased from 3 to 6. She also has 3 apprentices.
She commended the efforts of the CBN and FGN and encouraged youths and entrepreneurs to seek more information on the interventions as it would be of paramount support to their businesses
Name: Bathsheba J. Kalah
Intervention: Anchor Borrowers’ Programme
Sector: Agriculture
Location: Gombe State
Bathsheba Kalah is the cluster head of women in Anchor Borrowers’ Programme in Gombe State. She accessed a loan via the Rice Farmers Association of Nigeria (RIFAN) Special Project in Gombe State, and since her involvement in the ABP in 2021, her cluster has cultivated 830 hectares of land, realized 24,000 bags of paddy with which the loan was repaid, and the surplus reinvested in her business.
The programme has positively impacted the economy, their community, businesses and lives as they have engaged over 250 direct and indirect workers who were otherwise unemployed.
About the Author
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
