TAJBank, ICD Okay Deal On Capital Projects’ Financing In Nigeria

BY COBHAM NSA – Resolute in attracting funding for major infrastructure projects in Nigeria, TAJBank Limited has again stepped up its game with the signing of a Memorandum of Understanding (MoU) with the Islamic Corporation for the Development of the Private Sector (ICD).

The MoU signing between TAJBank and the ICD, a member of the Islamic Development Bank (IsDB) Group, aims at expressing convergence of will between both entities while also building a robust relationship between the Nigerian lender and the international organization to explore avenues of financing key capital projects in the Country.

According to the Bank’s board, the Sukuk will be offered in tranches of N10 billion each as soon as regulatory approvals are secured.

Commenting on the MoU endorsement, Managing Director and Chief Executive Officer of TAJBank, Mr. Hamid Joda, said; “We are deeply delighted to have crossed another milestone with the signing of this MoU and especially with the Islamic Corporation for the Development of the Private Sector (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.”

Also speaking on the deal, the Bank’s Executive Director, Mr. Sherif Idi, expressed happiness over the development, saying the MoU signing further demonstrates that “TAJBank is sustaining its giant strides, and this is seen in this partnership as we hope to do more in securing investments that will further bring about the creation of jobs and production for better national advancement.”

A leading non-interest bank in the country, TAJBank commenced operations about two years ago and has accomplished several milestones, including an expanded network of 22 branches within its franchise area during the period under review.

Interestingly, the Bank had a few days ago unveiled plans to launch a private sector targeted N100 billion Sukuk programme under a Mudaraba structure that 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 through the provision of finance for private sector projects, promoting competition and entrepreneurship, and encouraging cross-border investments, among other key responsibilities.