The Bank of Industry (BOI) and the Plateau State Government have signed a N4 billion Memorandum of Understanding (MoU) to establish a matching fund aimed at expanding access to finance for micro, small, and medium enterprises (MSMEs) in Plateau State.

The MoU was signed on Tuesday at the Government House in Jos, the state capital.

Under the agreement, the N4 billion matching fund will be co‑funded equally by the state government and BOI, with each party contributing N2 billion.

The fund is designed to provide financing for equipment acquisition and working capital for eligible businesses.

Governor Caleb Mutfwang highlighted the intended economic impact of the partnership, noting that it is expected to expand business activity, create jobs, and strengthen the local value chain across the state.

He indicated that the initiative aligns with the national economic agenda and aims to improve Plateau State’s contribution to Nigeria’s Gross Domestic Product (GDP).

“We believe that Plateau State has a lot of significant contributions to make to the development of the national economy,” Governor Mutfwang said at the ceremony.

“We want to increase our share of contribution to the national GDP, and the only way we can do that is to stimulate businesses,” he added, emphasising that many beneficiaries will include women and young entrepreneurs, according to an Agency Report.

BOI’s Managing Director, Mr. Olasupo Olusi, commended the state’s improved business environment as reflected in the Ease of Doing Business index, citing reforms that have fostered investment and private sector participation.

He said the fund will support training and capacity-building programmes for participating entrepreneurs in collaboration with accredited Entrepreneurship Development Centres.

Programme activities will include business development support focused on value addition in sectors such as poultry, block making, oil and rice milling, agro‑mechanisation, packaging, pharmaceuticals, bakery, and confectionery, among other viable enterprises.

The Bank of Industry is Nigeria’s oldest and largest development finance institution, established to provide long‑term capital to enterprises across sectors and support industrial growth and job creation nationwide.

It operates a range of funds and programmes aimed at improving access to affordable finance for MSMEs.

Plateau State has in recent years pursued regulatory and institutional reforms to enhance its business climate and attract private investment.

The state’s focus on MSME development is part of broader efforts to diversify its economy and reduce reliance on extractive industries.

• The matching fund is evenly co‑financed by BOI and Plateau State at N2 billion each.

• The initiative is intended to finance equipment and working capital for MSMEs, with emphasis on job creation and value chain strengthening.

• Training and capacity‑building for beneficiaries will be delivered through recognised entrepreneurship centres.

The establishment of a dedicated fund for MSME financing in Plateau State could improve access to affordable capital for small businesses, a longstanding challenge in Nigeria’s private sector.

By coupling financing with technical support and capacity building, the initiative may enhance enterprise resilience and drive inclusive economic activity at local and regional levels.

The focus on women and youth reflects broader policy priorities to promote inclusive participation in economic growth, potentially contributing to job creation and poverty reduction in communities across the state.