Minister of Finance and Coordinating Minister of the Economy, Wale Edun says the Federal Government is considering adopting a Non-interest finance window to fund key infrastructure and green projects in the Nation.
Speaking at the first Securities and Exchange Commission (SEC) Nigeria- Islamic Financial Services Board (IFSB) International Forum on Non-interest Capital Markets in Abuja on Wednesday
noted that the Non-interest financing has become a viable tool to tame Nigeria’s growing debt crisis as the alternative model in unlocking significant economic opportunities and mitigate the Nation’s dependence on conventional borrowing.
He added that the international forum is focused on strengthening the development of Nigeria’s Non-interest finance segment.
The Minister emphasized the need for alternative financing mechanisms that do not rely on interest but on equity participation, and that, this approach is critical in addressing the global debt crisis and promoting rapid inclusive growth.
Highlighting the importance of financing green projects and reducing reliance on foreign direct investment, he mentioned the production of electric vehicles and mass transit vehicles as examples of projects that align with the global climate action agenda.
In his remarks,Governor of the Central Bank of Nigeria Olayemi Cardoso reiterated that the apex bank remains in support of key stakeholders in the Non-interest banking ecosystem in ensuring that the sector evolves and fosters ongoing efforts to build a one trillion dollar economy as proposed by President Tinubu.
On his part, Director General of the SEC, Lamido Yuguda pointed on the vast opportunities in the Islamic financial market while lamenting that the Country could not utilize this economic opportunity effectively.
The SEC Boss affirmed that the Islamic Finance Industry was estimated to have a market size of three point two trillion dollars in 2022, with global sukuk issuances valued at one hundred and eighty two point seven billion dollars.
Responding, Secretary-General of the Islamic Financial Services Board, Bello Lawal Dambatta
said that the alignment between Non-interest finance and public-private partnerships in the infrastructure sector is a welcome development especially in strengthening revenue generation.