With a focus to contribute to the growth of Islamic banking in Nigeria, Sterling Bank’s non-interest banking unit has attracted a $15 million facility from the Islamic Corporation for the Development of the Private Sector (ICD), a multilateral development financial institution and a part of the Islamic Development Bank (IsDB) Group.
Recall that the bank in 2014 and 2015 also received US$25 million from the International Islamic Finance Trade Corporation (ITFC) and US$30 million from the ICD. Both institutions are members of the Islamic Development Bank (IDB) Group. In the same vein, the Central Bank of Nigeria (CBN) had approved an array of innovative non-interest financial instruments which will keep the franchise ahead of industry performance.
ICD was established in November 1999 to support the economic development of its member countries through the provision of finance for private sector projects, promoting competition and entrepreneurship, providing advisory services to the governments and private companies and encouraging cross border investments.
The bank, in a statement, noted that ICD extended the facility in view of its ability to use non interest banking contracts to structure transactions in innovative ways and the judicious use of past facility extended to it, adding that the fund would provide much-needed liquidity to finance additional projects for the benefit of the public.
While assuring that the bank would make good use of the facility, it also stated that the bank would continue to support the overall objectives of ICD which is mainly to finance projects and provide a wide range of financial products and services, support the development of Islamic financing in Nigeria and beyond through business expansion and complement the role played by ICD in the promotion of the private sector as a vehicle for boosting economic growth and prosperity.