Nigeria needs to tap into $2trn Islamic finance market — it won’t be for Muslims alone, says Zainab Ahmed

Zainab Ahmed, minister of finance, budget and national planning, says Nigeria needs significant financial sector reforms for sustained growth and penetration of Islamic finance in delivering overall economic growth.

Ahmed said this on Tuesday at the 5th African International Conference on Islamic Finance titled, “Infrastructure financing, sustainability and the future of African market 2.0” in Abuja.

The minister said that despite the huge potentials of Islamic financing to drive a more competitive economy, Nigeria’s finance sector is lagging behind in adopting Islamic financing in its financial market.

She said that Islamic finance instruments like Sukuk have been instrumental in closing the infrastructure gap in the country by promoting investments in pivotal economic sectors like healthcare, education and transportation.

“The asset-backed nature and risk-sharing components of Islamic finance structures help improve financial sector stability and make them appropriate for infrastructure public-private partnerships,” Ahmed said.

She further said that the engagement of key players in attaining efficiency in the Islamic finance networks is essential for improving its global economy, noting that the perception that Islamic finance is solely for Muslims is a major drawback to its development.

“Consequently, stakeholder engagement becomes imperative to enhance the soundness and efficiency in our financial system on Islamic finance, if we are to build a globally competitive economy,” she added.