Economic Confidential, August, 2009

STATE

Kaduna Secures N1.3bn from FMBN for Estate Development

The Federal Mortgage Bank of Nigeria (FMBN), following the request of the Kaduna State Development & Property Company (KSDPC) for an Estate Development loan of N4.55billion has approved the release of N1.369billion as a first phase of the programme for the construction of 400 housing units as residential housing units of detached, semi-detached bungalows and semi-detached one-storey building at Kaduna and Zaria Bye-Pass in Kaduna State respectively.

The State is processing the documents for the site in Jema'a Local Government which shall facilitate the construction of similar buildings in the area as part of its commitment to provide mass housing of its people especially the civil servants and pensioners as a permanent abode.

According to a statement by Umar Sani, the Special Adviser Media and Public Affairs said all due process is being followed towards the immediate award of contracts for the construction of the buildings and will soon be completed while work is expected to commence and be completed within the scheduled time.

The state has lately instituted agencies to cater for the interests of local, national and foreign entrepreneurs/industrialists. Mainly, the Ministry of Commerce and Industry arm of the State Government is now charged with the responsibility of maintaining a good economic climate. In order to promote industrial/commercial enterprises, the State Government has put in place several infrastructural facilities where in Kaduna and Zaria, up to seven and four industrial states, have been laid out and provided with access roads, water and power.

Other incentives include pioneer status scheme for newly established industries in order to survive the initial capital outlay and other related problems. Approved user scheme provides for transfer of profit and dividends arising from investments in accordance with exchange control regulations after payment of income tax. Also, the Federal Government has given approval for a Debt Conversion Programme (DCP), which aims at assisting industries that are viable but ran into some financial predicaments.

Considering the wide range of natural resources outlined above and the limited use of many of them by the existing industrial establishments, it is obvious that the industrial potentialities of the state are rich and enormous. The wealth of agricultural resources offers high potentials for food processing and refrigeration in large commercial quantities. At present, many of the farm produce are wasted in the fields or in poor storage facilities. For example, such crops as tomatoes, onions, yam, beans, sugar cane and fruits rot during harvest season because of large surplus. While good storage facilities may help solve the problem of scarcity during the off-season, good integrated processing/manufacturing industries established nearby might achieve multi-purpose objectives in stimulating social and economic development in the state.