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Borno State Governor, Professor Babagana Umara Zulum, has disbursed N1 billion in grants to Small and Medium-scale Enterprises (SMEs) across five local government areas in Southern Borno.
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The funds, distributed in Biu, Hawul, Shani, Bayo, and Kwaya-Kusar, are aimed at boosting entrepreneurship and enhancing business sustainability in the region.
Grassroots Development and Self-Reliance in Post-Conflict Recovery
During the disbursement, Governor Zulum emphasized that direct capital injection into the SME sector is critical for driving grassroots economic development and fostering self-reliance.
“This support is essential in our post-insurgency recovery phase,” he stated, highlighting the role of SMEs in rebuilding local economies and creating sustainable livelihoods.
SMEs: The Backbone of Nigeria’s Economy
SMEs form the backbone of Nigeria’s economy, accounting for over 90% of businesses, contributing approximately 48% to GDP, and creating 84% of private sector jobs.
Despite their importance, SMEs, particularly in Northern Nigeria, face significant challenges including insecurity, infrastructural deficits, limited funding, and high operational costs.
Addressing Critical Challenges in Northern SME Ecosystems
In Northern Nigeria, SMEs are vital in sectors like agribusiness, trade, and manufacturing but are hindered by insecurity such as banditry and kidnapping and poor infrastructure.
Governor Zulum’s intervention aims to mitigate these barriers by providing direct financial support, enhancing business resilience, and encouraging innovation within the local entrepreneurial landscape.
Looking Ahead: Digital Growth and Competitiveness
The initiative also aligns with broader efforts to strengthen ICT-enabled SMEs in Nigeria, which rely on digital tools for market reach and innovation.
While challenges like high data costs and skill gaps persist, targeted support such as this grant can enhance competitiveness and integration into the digital economy, supporting long-term growth in Borno and beyond.
