The economy of the State is basically agrarian with a cultivable 2.4 million hectares of land out of which 1.6million is under cultivation, leaving land area of 800,000 hectares, equivalent to one third of the total cultivable land available for investment. The state also has over 61 water bodies suitable for irrigation farming with a capacity of 1121CU.m. The major water bodies with a combined water surface area of 558Cum are located at Sabke, Jibia, and Gwaigwaye.
Farming and rearing of animals constitute the means of livelihoods of about 80% of the population of the state. The state is a major collection centre for cash crops such as cotton, groundnuts and food crops such as maize, guinea corn, millet, and vegetables. The range of livestock in the state is cattle, sheep, goat and poultry. These provides huge opportunities for setting up of large scale agro-allied industries such as sugar processing, rice milling, oil and flour milling, textiles, dairy production, confectioneries, meat processing, tannery, and poultry production, etc.
The State has the following ranking in agricultural production and in other business spaces in the country:
- The largest producer of cotton;
- The second largest producer of sorghum;
- Produces 13% of Nigeria’s sugarcane, placing it in second place in Nigeria;
- The World Bank ranked the State 7th in ease of doing business ahead of Lagos, Kano, Rivers and Cross Rivers;
- The State ranks 12th in Micro, Small and Medium Enterprises (MSME) development and growth;
- The State was ranked 17th in Gross State Product with average per capita of $6,022; and
- Major producer of other cereals and legume crops
The huge potentials for property development in the State are indeed very attractive. The State has been opened up with a first rate network of roads, especially, the State Capital which has been complemented with a 40Km ring road encircling the City. With a population close to 7 Million and estimated housing deficit of 690,000, the potentials for property developers are endless! Specifically, opportunities exist in small and medium cost housing, shopping malls, Conference and Event Management Centers, Hotels, etc.
With the increasing advancement in technologies aimed at harnessing the power of the sun and the increasing rate at which solar farms are springing up globally, Katsina State with its location within the Sahelian Belt is attractive destination for investment in Solar Power.
The State has rich cultural heritage epitomized by Ruma Landscape, Kusugu Well, the Emirs’ Palaces of Daura and Katsina and Antiquities of DurbiTakushiyi. These are complimented by the third biggest operational thirty five thousand-seater ultra-modern stadium in the country, racecourse, Polo ground, 18 – holes Gulf Course, Opened Air theatre. Opportunities abound in;
- Hotels Development of all categories;
- Holiday Resorts;
- Games Reserves;
- Tour Operators and Travel Agencies;
- Transportation; and
- Amusement Parks/Zoo; and
- Physical fitness and sports centres
Other economic activities available in the state are banking, transportation, small scale enterprises and trading. There are over ten Mega Markets and other medium and smaller ones throughout length and breadth of the state. These Markets provide the largest supply of Grains and Livestock in Nigeria and other West African Countries. They also serve as feeder to the famous Dawanau Market in Kano.
Katsina state is blessed with abundant mineral resources that could be tapped for industrial growth. Prominent amongst these include: lead, iron oxide, gold, iron ore, manganese, kaolin, silica sands, fire clay, asbestos, feldspars, mica, serpentine, gemstones, precious stones etc.
Investment Opportunities of some selected Agricultural Raw Materials
|Raw Materials/Location||Uses/Application||Investment Opportunities|
|Maize: Bakori, Funtua, Dandume, Sabua, Kankara, Danja, Malumfashi, faskari, kufur etc.||Production of animal feeds, starch, flour, confectioneries, saw dust cement flour, tile’s from pulverized maize stalk||Flour industry, local starch production, poultry feeds production, confectioneries|
|Soybeans: Bakori, Funtua, Dandume, Sabua, Kankara, Danja, Malumfashi, faskari, kufur etc.||Production of soya milk (yoghurt), cooking oil, animal feeds||Yoghurt production, edible oil production.|
|Sorghum/millet: all over the state.||Used in production corn flakes, animal feed, malt extract for starch, confectioneries and adhesive for textiles and pharmaceutical industries.||Confectioneries, production of malt extract, starch production, locally kunun zaki production.|
|Groundnut: all over the state||Production of groundnut oil and cake, animal feeds, confectioneries industries||Groundnut oil production, confectioneries animal feed production|
|Cotton: Bakori, Funtua, Dandume, Sabua, Kankara, Danja, Malumfashi, faskari, kufur etc.||Production of fiber for textile industry, cotton seed oil, animal feed||Cotton ginnery, oil mills, textiles|
The availability of various types of crops cultivated in the state provided an opportunity for the setting up of agro-allied industries. As previously stated, cotton , beans, tomatoes , pepper, groundnut, millet, maize and guinea-corn are raw materials for various types of industries. Leather and shoe manufacturing industries are feasible because of the availability in commercial quantity of hides and skin in all the nooks and corners of the state. Funtua textiles factory which employs over one thousand workers depends heavily on cotton being produced in Funtua, Bakori, Dandume, Sabuwa, Faskari, Danja, Dutsin-ma, Kurfi, Malumfashi and Kafur local government areas.
The availability of these raw materials offers wide ranging opportunities for setting up of more commercial and industrial ventures in the state. The two oil mills situated in Katsina and Funtua depend on groundnut and cotton seed for their raw materials requirements.
There are trunk A roads in the length and breadth of the state which ensure easy access to all parts of the state. Goods produced easily reach their market destination. Government has equally introduces bus services to supplement the efforts of private transporters.
It is pertinent to state that all agricultural production areas in the state are adequately linked with road networks. Road networks in the state also cover other parts of the country as well as neighboring Niger Republic.
Modem telecommunication services connect the state with all the parts of the federation. The Nigeria Telecommunications Limited provides twenty four hour telephone and telex services for effective communication. Already, automatic telephone exchanges have been installed in the most major towns of the state. Efforts are being made to provide such facilities in other local government headquarters. In additions, there are modern post and telecommunication office in many parts of the state established to provide efficient postal services. To date, virtually all the states are covered by Global Mobile Satellite (GSM) services. There are also courier services in the state complementing both NITEL and NIPOST services.
Electricity is the major source of power in the state. The power holding company has connected all major towns and villages to the National grid. Presently, over 45 towns are enjoying electricity in the state through the national grid.
Both skilled and unskilled labour is readily available in the state. Labour as a factor of production is not in any way a problem to prospective investors. At present, there exist 3 universities, a polytechnic, and college of education. There are also a number of technical colleges scattered throughout the state. In addition to seven business apprentice training centers, fully equipped to provide much needed manpower requirements, a craft village for youth empowerment has also been constructed.
The business apprenticeship training centre for instance, are mainly established to provide vocational training to primary school leavers and unemployed secondary school leavers and HIV orphans and widows in brick lying, Motor mechanic, electric works, welding and carpentry. The state has the capability to provide both skilled and unskilled manpower requirements for industrial and commercial purposes. Many of the state youth are on vocational skill, at various centers across the country.
Efforts are being made by the state government to provide adequate portable water to all parts of the state for both domestic and industrial use. The water source supply is mostly through Dams and Boreholes. Existing dams include Ajiwa, Mairuwa, Zobe, Malumfashi, and Jibia. Plans have reached advanced stage of completion, to boost the supply of water in the state foe consumption and irrigation purpose. This is through the ongoing first multi-state project. Under this, the Zobe Ajiwa, and Jibia dams will supply water for both irrigation purposes, to many areas of the state as well as for industrial usage. The jibia irrigation scheme has commenced with extended hectrage of arable land.
The role of financial institutions in commercial and industrial development of any society cannot be over emphasized. The financial organizations have been operational in the state rendering their services and granting loans to genuine businessmen and prospective investors. Some of these financial institutions are private enterprises while others are government owned. Such sources of finance, which serve as life wire of business, include the following:
- Katsina state small scale industries credit schemes
- New Nigerian Development company (NNDC)
- Katsina State Investment and Property Development Company (KIPDECO)
- Nigerian Bank for Commerce and Industry (NBC)
- Commercial Banks and Mortgage institutions
- Insurance Companies and Pension Funds
- National Economic Recovery Fund (NERFUND)
- Community Banks and Microfinance Banks
- Small Trade Special Scheme
- Small and Medium Enterprises Loan Scheme
- Small and Medium Enterprises Equity Investment Scheme through the central bank
The ministry of commerce, industry and tourism has provided land designated as layouts for industrial and commercial purposes to be provided to serious investors. Such layouts are provided the necessary infrastructure to create the enabling environment for the implementation and sustenance of their endeavors.
The state government has mapped out strategies and programmes to promote export trade in such areas as seame (Beni) seed processing, Neem seed processing, leather tanning and processing as well as cotton ginning and processing all geared towards export market. To this end, the government is now establishing processing industries in these primary products, as well as promoting the emergence of export production village (EPVs) for the products. In addition, the Government is collaborating with the federal government and the private sector to establish a container freight station at Funtua.