Non-Interest Microfinance Bank Unveils N2 Billion Support Package for Borno Small Businesses
In a significant move to stimulate economic recovery in Nigeria's northeastern region, Rayyan Microfinance Bank has launched a comprehensive N2 billion intervention package specifically designed for Micro, Small and Medium Enterprises (MSMEs) operating in Borno State. The non-interest financial institution announced this substantial funding initiative during the formal launch of its services and intervention projects in Maiduguri, the state capital.
Targeted Support for Women Entrepreneurs and Clean Energy Adoption
The intervention scheme has been strategically structured to address specific economic challenges facing Borno State after years of insurgency and instability. According to Abubakar Musa, Managing Director of Rayyan Microfinance Bank, the programme prioritizes women entrepreneurs, small business operators, and clean energy users across the state.
The funding package is organized around five distinct projects:
- Rayyan Women - A dedicated initiative targeting female entrepreneurs with specialized financial support
- Sun Ray - An alternative energy programme designed for homes, offices, and small businesses
- Three additional MSME development schemes focusing on broader entrepreneurial support
Musa revealed that four of these projects will each receive N500 million in funding, bringing the total commitment to N2 billion, while the fifth project will concentrate on creating investment opportunities for the bank's customers.
Government Collaboration and Economic Revitalization Efforts
During the launch event, the bank's leadership acknowledged the supportive environment created by the Borno State Government under Governor Babagana Zulum's administration. Musa specifically praised the state government's efforts in establishing pathways that attract private investors back to the region after years of security challenges.
In response, Governor Zulum welcomed the financial intervention and assured Rayyan Microfinance Bank of the state government's readiness to collaborate on supporting economic recovery and job creation initiatives. This public-private partnership approach is seen as crucial for accelerating the rebuilding of communities affected by nearly two decades of insecurity.
Broader Context of MSME Support in Nigeria
This intervention comes at a time when multiple initiatives are being implemented to strengthen Nigeria's small business sector. The federal government recently announced plans to access a World Bank loan facility that would provide single-digit interest rate financing to MSMEs through the Development Bank of Nigeria.
Additionally, the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has taken steps to establish its own microfinance bank, seeking approval from the Central Bank of Nigeria to enhance financial access for small businesses across the country. This proposed institution aims to streamline fund disbursement, improve tracking mechanisms, and attract more international development finance into the sector.
The N2 billion intervention by Rayyan Microfinance Bank represents a significant commitment to Borno State's economic recovery, with particular emphasis on empowering women entrepreneurs and promoting sustainable energy solutions. By providing much-needed financing without interest charges, the programme aims to strengthen entrepreneurship, stimulate business growth, and contribute to the broader economic rebuilding of communities that have endured prolonged insecurity.
