Islamic Dev’t Bank approves N788bn funding for Nigeria

By Chris Agabi and Philip Clement

The Islamic Development Bank (IsDB) total financing for Nigeria has peaked at $1.8 billion (over N788bn), Dr. Mohamed Suleiman Aljasser, the  President & Chairman of IsDB Has said. 

He stated this on Monday during the signing of Commodity Murabaha agreement on Kaduna 300 bed hospital and the Memorandum of Understanding signing between IsDB and the Nigerian Investment Promotion Council (NIPC) at the Ministry of Finance, budget and National Planning Headquarters Abuja.

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He said IsDB is committed to investing more in Nigeria especially in the agricultural value chains.

“The Islamic Development Bank Group has approved a total financing of $1.8 billion for Nigeria. This includes $971 million on budget financing by IsDB, about 288m provided by the Islamic Corporation Development (ICD), our private sector affiliate, $477m in trade operations by our trade arm, the International Islamic Trade Finance Corporation (ITFC), and $90 million from other Islamic Development Bank funds and operations. In addition, the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), our investment guarantee arm, has provided $1.1bn as business insured and $1bn as a new insurance commitment to help attract businesses and insure them. Against risks” he stated.

He further stated that “with the IsDB active portfolio in Nigeria standing now at $1.2bn and we have completed about 35 percent of all of those projects. And we look forward to strengthening bilateral relations. Out of the 36 states in Nigeria, IsDB has investments in 16 states.”

The IsDB president applauded the federal government of Nigeria for emphasizing the diversification of the economy and pledged the bank’s support in the diversification drive. 

Dr. Aljasser also said the  IsDB is keen to continue to engage Nigeria on its strategic priorities areas such as economic and social infrastructure, and advisory support for strengthening Islamic financial services.

“IsDB is committed to supporting Nigeria to deal with the recovery phase of COVID-19 including providing the necessary support to the private sector to create and revive economic growth. Two projects, SAPZ and the Nigeria-Morocco gas pipeline – very important projects for Nigeria’s hydrocarbon and the rest of the world” he noted.

He also sought land in Abuja to build a permanent office for the bank as Nigeria, according to him,  is the banks largest operational base 

“Nigeria is the largest office outside of the bank’s head office in Jedda thus we will need a piece of land to build a permanent office in Abuja. We are engaged in other areas like education and health and we are looking forward to entering the food sector as there is a $10bn facility Nigeria can benefit from” he said.

Speaking during  the Murabaha agreement signing  to support the construction of a 300-bed specialized hospital in Kaduna State, minister of finance, Budget and National Planning, Mrs. Zainab Ahmed said the  project will provide comprehensive  qualitative tertiary health services to the country.

She said “Nigeria became a regional operational hub of the Bank in Africa in 2017 as the Bank expanded its existing country gateway office in Abuja, to serve as a key regional office, since then the bank has offered valuable interventions in Nigeria. 

“Also,  of its 56 member Countries and Nigeria is currently the 4th largest shareholder with 8.75% share that entitled it to have a permanent seat on the board of Executive Directors. Accordingly, the federal government is will to explore areas of collaboration to foster economic growth,” she added.