TAJBank, ICD seal pact on capital projects’ financing in Nigeria

TAJBank Limited, Nigeria’s leading non-interest bank, has signed a Memorandum of Understanding (MoU) with the Islamic Corporation for the Development of private sector (ICD). According to a statement by Hamid Joda, Managing Director of TAJBank, the MoU is aimed at attracting funding for major infrastructural projects in Nigeria. The News Agency of Nigeria (NAN) reports that ICD is a member of the Islamic Development Bank (IsDB) Group, According to the managing director, the MOU represents a convergence of will between both entities.

He said that it would build a relationship between the Nigerian bank and the international organisation to explore avenues of financing key capital projects in the Country. Joda said that the bank’s recently launched Sukuk would be offered in tranches of N10 billion each as soon as regulatory approvals were secured. “We are delighted to have crossed another milestone with the signing of this MOU, and especially with the ICD. It only further buttresses our intention of stimulating investments in critical sectors of the economy leading to national development. As we all know, Nigeria has a huge infrastructure gap that requires funding through long-term funds like that of the ICD,” he said. Mr Sherif Idi, the bank’s Executive Director, also expressed his joy over the development.

Idi said that the MoU further demonstrated that “TAJBank was sustaining its giant strides. This is seen in this partnership as we hope to do more in securing investments that will further bring about creation of jobs and production for better national advancement,” he said. TAJBank, a leading non-interest bank in the country, commenced operations about two years ago. The non-interest banking services provider had a few days ago unveiled plans to launch a private sector targeted N100 billion Sukuk programme under a Mudaraba structure. It had said that the Sukuk programme will afford it the opportunity to grow its capital base and by so doing, position it on a strong pedestal to finance large and long-term
projects in Nigeria. The ICD is a multilateral development financial institution under the IsDB saddled with the responsibility of supporting the development of its member-countries. The ICD provides finance for private sector projects, promotes competition and entrepreneurship and encourages cross border
investments. (NAN)