First City Monument Bank (FCMB) has secured a $15 million trade financing facility from the International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank Group. The facility is a Master Murabaha Agreement, which was announced by FCMB in a statement on Wednesday.
The Nigerian Islamic finance industry is estimated to be worth $2.9 billion, with outstanding sukuk being the largest segment at 57%, followed by Islamic banks at 42% (total assets), and the remaining one percent between Islamic funds (total assets) and takaful (total contributions), according to Fitch.
The agreement aims to strengthen FCMB's support for Nigeria's trade finance sector and will facilitate the import and export of agricultural products, machinery, essential commodities, raw materials, and alternative energy solutions. The funds will be used to drive growth in critical sectors such as agribusiness and renewable energy.
FCMB's Managing Director, Yemisi Edun, emphasized the bank's commitment to driving sustainable economic growth in Nigeria through investments in key sectors. "This agreement affirms FCMB's commitment to driving 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 said.
FCMB's Divisional Head of Treasury and International Banking, Gerald Ikem, highlighted the significance of the partnership, stating that it signifies more than just international recognition of FCMB and Nigeria's economic potential.
