IsDB to release $150m for Nigeria’s agro-industrial zones


The Islamic Development Bank has said it will in the next few days release the sum of $150m for the development of Special Agro-Processing Zones in Nigeria.

The Vice President, Country Operations, IsDB, Dr Mansur Muhtar, confirmed this on Tuesday during a panel session at the 5th African International Conference on Islamic Finance in Abuja.

According to Muhtar, Islamic finance offers several features and practices that support infrastructural growth.

He said, “Islamic banking is asset-backed and based on participation and risk sharing, we also have to look at other elements which are the social and environmental sustainability that are consistent with Islamic principles of supporting infrastructure.

“At IsDB, we focus on projects in social and fiscal infrastructure to implement these projects we place a lot of emphasis on regional connectivity.

“For example, in Nigeria, in the next couple of days, the IsDB will be making a contribution to a project that is aimed at supporting the development of special agricultural processing zones and we will be committing $150bn. We have also been involved in several other projects in Nigeria.”

In September, the African Development Bank disclosed that it was collaborating with other multilateral organisations to finance with the sum of $520m the first phase of Special Agro-industrial Processing Zones in some selected states across Nigeria.

Also speaking at the event, a former Governor of the Central Bank of Nigeria, Sanusi Lamido, said one of the most significant impacts of Islamic finance “is that it provides a potent alternative for resource mobilisation and fair and equitable allocation of resources”.

He said for the benefits of the model to be reaped, an effective legal and regulatory framework that would enforce the legality of finance contracts and ensure Sharia compliance must be in place.

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Publish date : 2021-11-09 23:48:45

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