Despite Nigeria’s rising debt profile and huge cost of servicing the nation’s loan, the Federal Government has received approvals for a $1.8 billion loan from the Islamic Development Bank.
This was disclosed by the bank’s president Dr. Mohamed Jasser at a meeting with Nigeria’s Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, on Monday in Abuja.
The bank which has the mandate to foster economic growth in its member countries disclosed that it seeks to offer support to Nigeria and fast-track completion of capital projects.
Dr. Mohamed Jasser while speaking at the meeting said, “The Islamic Development Bank has approved a total financing of $1.8bn for Nigeria.
“This includes $971m in project financing and $288m provided by our private sector affiliate and $477m in trade operation by our trade arm, International Islamic Trade Finance Corporation, and $90m by other Islamic Development Bank Group funds and operations.
“The Islamic Development Bank will support Nigeria’s recovery from COVID-19, including providing the necessary support to the private sector to create jobs and revive economic growth”.
The bank by its mandate seeks to ensure that approved funds are used only for approved purposes. Therefore, appealed to Nigeria’s Minister of Finance to help the bank to ensure the fund its deployed as stated in the loan agreement signed by Nigeria and the financial institution.
It also appealed to the minister to help secure a piece of land in the country’s federal capital for Nigeria’s headquarters as its current office was no longer enough for operations.
To ensure that financing is used and applied in ways that adequately secure the Bank’s mandate while maximizing the development impact, the Islamic development bank encourages and promotes sound, transparent, fair and performing procurement systems in member countries, Investors King understands.