Market Update: Nigeria signs strategic IsDB partnership to accelerate $1trn economy goal – Full Analysis

Nigeria has formalised a country engagement framework partnership agreement with the Islamic Development Bank (IsDB) for 2026 to 2028. The agreement aligns with national development plans and the priorities enshrined in the ‘Renewed Hope Agenda’.

Anasse Aissami, director-general of the country programme at the IsDB, speaking at the signing ceremony in Lagos today, said the agreement aimed to support the Tinubu administration’s development priorities. He said the partnership would assist Nigeria’s economic transformation and structural change, accelerating growth by mobilising resources and investments.

“We will be focusing on large-scale, transformative infrastructure projects in both the public and private sectors,” he said.

Infrastructure and human capital focus

“These could include road and rail corridors, urban mobility, and energy transmission and distribution. We are especially moving towards renewable energy generation to help Nigeria plug its electricity deficit,” Aissami said.

Also, the bank will support large-scale health and education projects to increase access, improve quality, and boost the population’s productivity.

Read also: Why today’s oil shock feels familiar and more dangerous

Aissami said the IsDB Group had evolved into a trusted partner in Nigeria, expanding its engagement through a multi-pillar strategic model designed to catalyse the country’s transition to a diversified, high-growth, and resilient economy.

Mobilising private and public sector resources

“With the programme tackling the core of our completed and ongoing interventions, the IsDB Group has deployed its financing instruments to support sustainable infrastructure and human capital development,” he said.

The group maximises strategic support through its specialised entities. These include the International Islamic Trade Finance Corporation, which mobilises trade financing; the Islamic Corporation for the Development of the Private Sector, which invests in private enterprise; and the Islamic Corporation for the Insurance of Investment and Export Credit, which provides business insurance to de-risk the investment landscape. Aissami said the group also provided knowledge-based solutions and capacity building in Islamic finance.

Olawale Edun, finance and coordinating minister of the economy, said Nigeria was a member of the IsDB Group alongside 56 other countries. He said the agreement meant the bank would finance the country’s agriculture, infrastructure, social, and health sectors.

Driving a $1-trillion economy

“What we have done today is ensure that we aligned the Renewed Hope Agenda and Action Plan of Bola Tinubu, the president, with the activities the IsDB Group is looking to finance under the Country Engagement Framework,” Edu said.

“It is making sure we are on the same page and ensuring it is what Nigeria requires that is being financed. At this time of global uncertainty, we must get the resources and the support the IsDB can offer.”

Edu said domestic production, particularly refining crude oil to make petroleum products locally, was vital in the current global economic climate.

Stimulating domestic production

“We are reaping the benefits of recent investments by the Dangote Group and others. The continued incentive framework and operating environment—particularly the market pricing of key products such as petroleum—has allowed production and supply to flow,” he said.

Read also: ADC, APC differ on Tinubu’s democratic record in birthday messages

“The importance of the interaction with the IsDB Group today is that Nigeria is on the right trajectory. Having stabilised the economy, we need to go for rapid, sustained, and inclusive growth at scale because of the size of the population.”

Edu said Nigeria aimed to build a $1-trillion economy powered by productive sectors, private capital, and innovation.

Attracting purpose-driven capital

“To achieve this, we are prioritising a fundamental shift from reliance on public financing to mobilising private investment at scale. This is why our partnership with the IsDB Group is both timely and strategic,” he said.

“We are working together to attract what we call ‘capital with purpose’ —investment that delivers not only financial returns but also measurable social and economic impact.”

The signing of the Country Engagement Framework marks a renewed commitment to collaborative growth, targeting key sectors such as infrastructure, economic diversification, and social development. The agreement is expected to align Nigeria’s national priorities with the bank’s technical expertise, opening the door to more structured and impactful investments.