Reason why we are embracing Islamic finance, FG
By Mudathir Ishaq
The Federal Government of Nigeria, through the Minister of Finance Coordinating Minister for the Economy, Wale Edun, has explained the reasons behind it’s embracing of Islamic finance.
The minister said Islamic finance has provided a potential alternative to present high levels of interest-based financing.
Wale Edun made the pronouncement at a programme organized by the Security Exchange Commission (SEC) and the Islamic Financial Services Board (IFSB), in Abuja, Vanguard reported.
Impact of high interest rates has made it “impossible to access the funds needed for development, infrastructure, and even social services,” Edun stressed.
Highlighting the crippling effect, he listed infrastructure, education and healthcare as some of the vital areas suffering under the burden of exorbitant borrowing costs.
Edun recalled a recent $30 million grant from the United Arab Emirates (UAE) dedicated to climate action and adaptation in Nigeria.
“Notably, this grant was funded through Islamic finance principles, hinting at a shift in the landscape of available resources. Clearly, funds these days are with those who practice Islamic finance. You better follow the money,” he said.
“With Nigeria’s objective of achieving rapid, inclusive, and sustainable economic growth, the minister emphasized the importance of learning from the IFSB and educating oneself to make optimal use of this financing tool”.
The Minister added that Islamic finance provides a window of opportunity to fuel the economy effectively, thereby encouraging stakeholders to embrace it to bolster economic growth in Nigeria.
In another development, the Finance Minister said the Federal Government may return to the National Assembly for appropriation of extra revenue for the 2024 budget if the country records a solid revenue performance next year.
The minister made this known on earlier this month when he appeared before the Senate Committee on Finance to defend his ministry’s budget.
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