The Federal Government has called for major reforms in the Islamic Development Bank, urging the institution to review its financing strategies to adapt to the changing economic landscape.
The call for a change was made by Nigeria’s Minister of Finance and Coordinating Minister of the Economic, Wale Edun, at the IsDB Governors’ Conference in Al-Madinah, Saudi Arabia.
Edun’s comments were part of the bank’s continuing consultations to design its next ten-year strategy, which aims to have a bigger developmental influence on member states.
The statement, obtained by THE POINT on Monday, noted that Edun’s views were made alongside those of Algeria’s Minister of Finance and Chairman of the Board of Governors, Laaziz Faid, and Saudi Arabia’s Finance Minister, Mohammed Al-Jadaan, who launched the proceedings.
Edun emphasized the critical need for IsDB to reassess its development financing strategies in the context of current global economic conditions.
He advocated for a focus on transformative, high-impact projects in critical areas like as infrastructure, agriculture, rail, and energy, as well as investments that provide significant returns to assure long-term financial sustainability.
In his speech, Edun asked the IsDB to prioritise projects that would not only boost economic growth but also lessen member states’ reliance on rising debt levels.
“We must ensure that financing solutions are not just effective but also innovative and aligned with the national priorities of our member countries,” Edun told the crowd.
“A concessional financing approach that balances development goals with minimal debt accumulation is crucial,” he added.
Furthermore, the Minister emphasised the significance of building strong monitoring systems to evaluate the efficiency of the bank’s activities.
He emphasised that adequate tracking would ensure that the IsDB’s efforts provide measurable results.
“His remarks reflected Nigeria’s commitment to strengthening the IsDB’s role in delivering greater results for its member states,” the statement continued.
The IsDB’s ten-year strategy, which will direct its operations from 2026 to 2035, was discussed at the Governors’ Retreat.
The approach seeks to address pressing development issues while adjusting to a world that is changing quickly.
