First City Monument Bank (FCMB) Plc, a prominent financial service holding company, has announced its successful acquisition of a $15 million trade financing facility from the International Islamic Trade Finance Corporation (ITFC). This move aims to enhance support for Nigeria’s trade finance sector.
The facility is structured as a Master Murabaha Agreement with ITFC, a member of the Islamic Development Bank Group, according to a statement released on Wednesday.
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Fitch has estimated the Nigerian Islamic finance industry to be worth $2.9 billion by the end of 2022. Within this industry, outstanding sukuk represents the largest segment at 57%, followed by Islamic banks at 42% (total assets), with the remaining 1% divided between Islamic funds (total assets) and takaful (total contributions).
Yemisi Edun, Managing Director/CEO of FCMB, expressed that the agreement underscores FCMB’s dedication to promoting sustainable economic growth in Nigeria. “By investing in critical sectors like agribusiness and renewable energy, we’re not just strengthening our position; we’re contributing to a more robust and resilient Nigerian economy that can confidently engage globally,” she stated.
Gerald Ikem, Head of Treasury and International Banking at FCMB, highlighted that the collaboration with ITFC represents more than just international recognition of FCMB and Nigeria’s economic potential. It provides the necessary resources to drive growth in key sectors such as agriculture, manufacturing, and renewable energy.
“It reinforces our dedication to fostering sustainable and inclusive economic progress throughout the country,” Ikem added.
A representative from the bank mentioned that the funds will facilitate the import and export of agricultural products, machinery, essential commodities, raw materials, and alternative energy solutions.
