Islamic Development Bank provides Nigeria with $1.8bn to fund infrastructural development

ORGANISATION of Islamic Cooperation (OIC) financial house the Islamic Development Bank (IsDB) has approved a total financing package of $1.8bn for Nigeria to be used to fund infrastructural development projects.

Founded in 1973 by the OIC finance ministers, the IsDB, of which Saudi Arabia holds about one quarter of its paid up capital, provides lending to its 56 members. Over the years, the bank has funded numerous developmental projects in countries like Kuwait, the United Arab Emirates, Turkey, Malaysia, Indonesia, Saudi Arabia, etc.

Seeking to benefit from its membership of the OIC, Nigeria applied for a loan that includes $971m  in project financing by the IsDB. About $288m of this will be provided by the Islamic Corporation for the Development, the bank’s private sector affiliate, with $477m coming from trade operations by its trade arm the International Islamic Trade Finance Corporation and $90m coming from other IsDB funds and operations.

Nigeria has also increased its stake in the IsDB to 8.75%, which now makes the country the fourth largest shareholder of the 56-member bank. In addition, the Islamic Corporation for the Insurance of Investment and Export Credit, the bank’s investment guarantee arm has provided $1.1bn as business insurance to help attract businesses and insure them.