Islamic Devt Bank to Boost Nigeria’s Funding, Targets Private Sector

The Islamic Development Bank (IsDB) has signalled plans to significantly scale up its support to Nigeria over the next five years, marking a major shift towards a private sector-driven development model aimed at accelerating economic transformation.

Director general of Country Programs at IsDB, Anasse Aissami, speaking at the IsDB Group Day in Nigeria on Monday, said the bank is repositioning its strategy to deliver a more robust and integrated financing framework that goes beyond traditional project funding.

He disclosed that the bank’s planned interventions in the country over the next five years are expected to surpass what has been delivered in the last 25 years, underscoring a renewed commitment to Nigeria’s development priorities.

“We are able to increase development support over the next five years, even more than what has been accomplished in the last 25 years,” he said, signalling what analysts describe as a major funding boost for Africa’s largest economy.

According to him, the new direction reflects a deliberate pivot towards a private sector-led model, noting that, “this enhanced engagement strategy moves beyond traditional project financing to a holistic, group-level value proposition that integrates project finance, private sector equity and risk mitigation.”

The IsDB, he added, has evolved into a trusted development partner for Nigeria, adopting a synergised, multi-player model designed to catalyse the country’s transition to a diversified, high-growth and resilient economy.

He explained that the approach is designed to unlock broader opportunities for investment and productivity growth, particularly by leveraging the bank’s specialised institutions.

These include the International Islamic Trade Finance Corporation (ITFC), which supports trade expansion; the Islamic Corporation for the Development of the Private Sector (ICD), which provides financing for private enterprises; and the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), which de-risks investments and enhances investor confidence.

Aissami added that the IsDB Institute complements these efforts through knowledge-based solutions and capacity development, particularly in Islamic finance.

Nigeria, he noted, remains a strategically important member of the IsDB Group and a major shareholder, with longstanding collaboration spanning critical sectors such as agriculture, energy, transport, health and education.

Through these interventions, he said the bank aims to not only finance infrastructure but also drive job creation, empower youth and women, strengthen financial institutions and improve living standards.

“The IsDB Group remains resolute in its mission to deepen strategic partnership in Nigeria, prioritising operational excellence and accelerating transformative projects that foster sustainable growth and enhance productivity,” he said.

He further stressed that the bank would continue to work closely with Nigerian stakeholders to scale development support and deliver broader economic impact across the country.