Abia State Government has expressed interest to access the Bank of Industry (BoI) N19.8 billion Micro, Small and Medium Enterprises Matching Fund to assist the finished leather and garment sectors in the State, BusinessDay has gathered.
This move is in line with the State Government’s promise to support artisans, especially those in Aba, the State’s commercial hub, to boost their businesses and improve the economy of the State.
Suleiman Umar, who confirmed this in Aba, at the just concluded 2015 Abia SME Summit, organized by Wider Perspectives Limited, revealed that the Abia State Government is currently discussing with the BoI on the possibility of accessing this fund to boost activities of artisans in the garment and leather sectors-comprising shoe, belt and bag makers.
Abia State Government is expected to pay a counterpart fund to enable it access the funds, which is given out on an average interest rate of 5 percent.
About 17 States of the Federation, namely, Anambra, Delta, Kwara, Niger, Kogi, Osun, Edo, Ondo, Ekiti, Ogun, Oyo, Gombe, Benue, Kaduna, Taraba, Enugu and Cross River States, are also interested in accessing this fund from the BoI.
Meanwhile, the Abia State Government has set machinery in motion to develop an industrial city at Umukalika, in Obingwa Local Government Area of the State, about seven kilometres away from the Aba city centre.
The Umukalika industrial site, spanning about 35 acres, was earmarked for the project, but left undeveloped, by previous administrations in the State.
Aba, the commercial hub of Abia State, has one of the largest concentrations of micro, small and medium enterprises (MSMEs) in Nigeria and a bulk of this number are engaged in leather works, steel fabrication and garment making, which could be attributed to the popularity of the city.
It is estimated that Aba hosts 110,000 shoemakers and 50,000 garment makers.
Consequently, it is the desire of the present administration in the State, led by Governor Okezie Ikpeazu to provide a good environment for artisans and other business operators and the restoration of infrastructure in the commercial city of Aba, is an integral part of the plan, says a source.
Ikpeazu in his first address to the people of the state affirmed that regeneration of Aba will create modern neighbourhood markets and parks, including crucial developments of business and leisure along the Aba River, and new residential and business locations.
According to him, “Our story as a people is one of entrepreneurship, resourcefulness and diligence. This is our pride. We have astounded the world with our home grown technical skills, especially during a period of pervasive adversity, and followed it up with our trade and commercial prowess elevating one of our cities, Aba, into a prominent commercial hub within the West African region.
“This historic renown is to become our future narrative. The time is ripe to use the over 110,000 shoemakers and 50,000 garment makers as a launching pad to enable Abia to truly become the undisputed SME capital of Nigeria”.
He stated that his administration was committed to providing the enabling environment and infrastructure to facilitate the growth and development of Abia and its people; positioning it as a premier residential, business and tourism destination, with the ultimate objective of uplifting the lives of the people.
He recalled that Aba was for many years a thriving hub for manufacturing and commerce until epileptic electricity supply and insecurity forced the shutdown of most indigenous and foreign owned industries.
Ikpeazu recognized and appreciated the efforts of the Geometric Power Group and the Federal Government’s NIPP project at Alaoji, towards providing a solution to the perennial challenges of electricity supply to the State.
GODFREY OFURUM
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