The Niger State Government has recently entered into a significant partnership by signing a Memorandum of Understanding (MOU) with the Alternative Bank, a move poised to drive sustainable development across various sectors in the state.
The MOU encompasses key areas such as Education, Health, Agriculture, Transportation, Energy, and Infrastructure. This pivotal agreement, inked in Abuja, signifies a collaborative effort to uplift the state’s overall well-being.
Governor Mohammed Umar Bago, representing the State Government, expressed his enthusiasm for the collaboration with the financial institution.
He highlighted the importance of this partnership, emphasizing its potential to unlock the state’s agricultural capabilities. Notably, Governor Bago pointed out that, despite having substantial arable land, the state has yet to cultivate even 1% of it.
To address this, the State Government aims to acquire earthmoving equipment, including Caterpillar, bulldozers, and payloaders, through a long lease.
This strategic move is designed to prepare vast expanses of land for cultivation, with a bold target of covering about 4.5 million hectares over the next decade.
In a further bid to enhance agricultural prospects, Governor Umaru Bago disclosed ongoing discussions with Almarai, a prominent Saudi multinational dairy company.
The focus of these talks revolves around the potential production of Alfalfa plants, recognized for their economic value. This diversification effort aligns with the state’s commitment to harnessing various avenues for economic growth.
The Executive Director of the Alternative Bank, Garba Mohammed, echoed the sentiment of collaboration and explained that an international partner had already expressed a commitment to invest $65 million in establishing a sugarcane plantation on five hectares of land in Niger State.
This ambitious venture is anticipated to yield an estimated 50,000 tonnes of sugar annually, promising significant economic benefits for the region.
The sugarcane plantation project holds the promise of generating employment opportunities, producing methanol, providing animal feeds, and contributing to electricity generation.
Garba Mohammed further disclosed that a development partner from the United Arab Emirates (UAE) is prepared to invest between $1 to $10 million for the exportation of the Alfalfa plant.
This initiative would require approximately 100,000 hectares for the cultivation of the plant, presenting a substantial opportunity for economic diversification and trade.
In addressing the need for earthmoving equipment, Mohammed proposed a strategic approach for the State Government.
He suggested obtaining Ijarah Sukuk from the capital market, spanning a period of 5 to 7 years. This financial mechanism is expected to reduce costs, enabling the state to acquire the necessary equipment without a significant upfront financial burden.
Mohammed emphasized that this approach would facilitate a return on investment, ensuring that the equipment contributes to the state’s development without imposing an undue financial strain.
In essence, the MOU between the Niger State Government and the Alternative Bank signifies a forward-looking commitment to sustainable development, economic diversification, and job creation, positioning the state on a trajectory of growth and prosperity.
