The Alternative Bank, an Africa-focused non-interest financial institution, has inked a multiyear agreement with the Niger State government.
This collaboration aims to catalyze development across critical sectors such as agriculture, transportation, energy, and infrastructure within the state.
Mohammed Bago, Governor of Niger State, together with Garba Mohammed, the executive director at The Alternative Bank, sealed the Memorandum of Understanding (MoU). Governor Bago highlighted that the primary objective of this partnership is to harness and maximize the agricultural potential inherent in the state.
Expressing satisfaction with the financial institution’s commitment to collaborating for the state’s agricultural growth, Governor Bago outlined the state’s ambitious plan. They intend to lease earth-moving equipment, including caterpillars, bulldozers, pale loaders, and graders, to prepare 4.5 million hectares of cultivable land within the next decade.
The collaboration between The Alternative Bank and the State Government opens avenues for numerous developmental prospects. These include the deployment of solar-powered kiosks across various locations to facilitate basic healthcare delivery and community convergence. Additionally, the deal encourages investment in agriculture to strengthen the agro-economy value chain, with a focus on food security and export enhancement.
Moreover, the agreement targets expediting the transition to sustainable electric transportation in Niger State, aiming to empower people while reducing environmental impact from fossil fuel usage (PMS/AGO). It also aims to bridge banking service gaps in underserved areas, ensuring comprehensive financial service access and economic integration for all residents.
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Furthermore, the collaboration introduces a digital platform mirroring the physical setup, infrastructure, and operational model of the state’s tertiary institutions. Lastly, it emphasizes improving the drug supply chain and expediting health insurance to broaden healthcare access across the state.
Garba Mohammed, Executive Director of Alternative Finance, highlighted significant investment opportunities stemming from the deal. He mentioned an international partner’s willingness to invest $65 million in a sugarcane plantation, generating job opportunities and producing electricity and other related products. Additionally, a development partner from the UAE is prepared to invest between $1 and $10 million for exporting the Alfalfa plant, necessitating 100,000 hectares for cultivation.
Mohammed also recommended that the state government consider obtaining Ijarah Sukuk from the capital market for 5 to 7 years. This move aims to reduce costs and ensure a return on investment without significant upfront costs from the state, further bolstering the collaboration’s financial sustainability.
