The Finance Minister and Coordinating Minister for the Economy, Wale Edun, has stated that Islamic finance is a veritable tool for financing development, News About Nigeria reports.
The minister stated this at a programme organised in Abuja by the Security Exchange Commission (SEC) and the Islamic Financial Services Board (IFSB).
According to him, it was becoming increasingly difficult for the world to afford the “elevated high levels” of interest-based financing, adding that development is also constrained by the soaring cost of borrowing.
He noted that Islamic finance provided an additional means that would aid Nigerians in propelling critical economic growth.
He further stated that the Ministry of Finance needed to tap into Islamic financing to ensure that the economy of the country is fueled effectively.
Edun, while emphasising the detrimental impact of high-interest rates, noted that the high interest made it nearly impossible to access the funds needed for development, infrastructure, and even social services, adding that sectors like infrastructure, education, and healthcare suffered the most from the burden of exorbitant borrowing costs.
He, therefore, offered a potential alternative, referencing a recent $30 million grant from the United Arab Emirates (UAE) dedicated to climate action and adaptation in Nigeria.
According to him, the 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.
He also urged the people to give better thought to Islamic financing and ensure they utilise it.
