Sokoto State government has disbursed an interest-free loan of N1billion to traders and artisans in the state.
The disbursement of the loan was done at the flag-off of the State Micro Finance Bank in its effort to improve the lives of the citizenry and accelerate socio-economic development.
Aminu Waziri Tambuwal, governor of the state who flagged off the operations of the Giginya Micro-Finance Bank in Sokoto Friday, stated that “the loan is going to be revolving in nature and will be paid back on monthly instalments in two years for others to benefit”.
Giginya Micro-Finance Bank is the first indigenous bank in Sokoto state licensed by the Central Bank of Nigeria (CBN).
Tambuwal also assured that the state government was poised to grow the financial base by sourcing for N2 billion from the CBN, “to support our traders and all those at the micro, small and medium level of the economy.”
The governor added that Giginya Micro-Finance Bank “is planning to grow its deposit base from major stakeholders- contractors, state government, parastatals, agencies and placement from individuals and corporate bodies”.
The bank, according to him, will also key into the Islamic banking window to provide various services of Islamic Sharia allowable banking transaction such as Mudaraba, Murabaha, Salam, Ijara and Istisna.
The governor emphasised that his administration, is “ready to continuously empower traders and artisans to make their lives easier through provision of non-interest soft loans for their various businesses.
He promised that other empowerment programmes for different groups of businesses would also be implemented.
In his address, the Commissioner of Commerce and Industries, Bashir Gidado thanked the state government for initiating the facility saying that the loans would stimulate commercial activities in the state.
He added that the loan was not the first to be provided to traders and explained that the sum of N500 million naira had been distributed previously to them.
The Chairman of the bank, Sambo Bashar, who applauded the effort of the state government can only be further emphasized by the noble intention of the state governor to lift the poor and women out of penury.
A representative of the Sultan of Sokoto, Sambo Wali Junaidu, Wazirin Sokoto, a professor, while noting that the microfinance bank is a step toward the economic development of the state, requested that 50 percent of the beneficiaries should be women, many of who are in purdah.