Finance Minister and Coordinating Minister for the Economy, Wale Edun, has explained why the Federal Government is embracing Islamic finance. The minister said the world can no longer afford the “elevated high levels” of interest-based financing.
Edun stated this at a programme organised in Abuja by Security Exchange Commission (SEC) and the Islamic Financial Services Board (IFSB). The minister noted that man-made and natural shocks have pushed rates sky-high, adding that development is also constrained by the soaring cost of borrowing.
Highlighting the crippling effect of high interest rates, he listed infrastructure, education and healthcare as some of the vital areas suffering under the burden of exorbitant borrowing costs.
Offering a potential alternative, Edun drew attention to a recent $30 million grant from the United Arab Emirates (UAE) dedicated to climate action and adaptation in Nigeria. He said, “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 practise Islamic finance. You better follow the money.” He urged deeper understanding and utilisation of Islamic finance, saying it is a veritable tool for financing development endorsed by IFSB. According to Edun, Islamic finance provides an additional avenue through which Nigeria can propel critical economic growth.
