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25 Mar, 2012

Islamic Bank to Loan Nigeria US$2 Billion for Development Projects


ABUJA, 14 March (IINA) – The Islamic Development Bank (IDB) and its affiliates are to provide financing envelop to the tune of $2 billion for the implementation of projects in Nigeria in the following areas: Agriculture, Energy, Transport, Water Supply and Sanitation, Education, and Health.

It has also budgeted for this year, the sum of $700 million for the development of institutional capacity building to address pockets of poverty and other related initiatives. This was in line with the bank’s strategic plan and an indicative 3-year Country Programming (2012-2015) which it recently formulated.

Apart from another N30.2 billion for Food Security Programme covering Anambra, Gombe and Yobe States, the Saudi Arabia-based bank announced in Abuja weekend that it has also approved additional eight projects in the sum of $200million, and granted trade financing for $205 million to prominent companies and banks in the country.

In order to help Nigerian small-scale farmers improve their agricultural production through the adoption of best farming practices that could result in less dependence on rain-fed agriculture, and enhancement of productivity, it further pledged to sponsor study visit of 13 Nigerian experts from seven States and the Federal Ministries of Agriculture and Water Resources for 2 weeks to successfully implemented small – scale irrigation projects in Indonesia in April under a Reserve Linkage Programme.

The 56-member IDB finances development projects in member countries through a number of Sharia-compatible modes such as Loan, Leasing, Installment Sale, Equity Participation, Lines of Financing, etc. Besides, its trade financing schemes, such as Import Trade Financing Operations (ITFO), Longer Term Trade Financing Scheme (LTTFS), Islamic Banks’ Portfolio (IBP), etc., promote trade among member countries, and represents the strongest example of South-South cooperation. Nigeria joined the bank on June 15, 2010.