After receiving a sum of $370 million from Islamic Development Bank (IDB) for education, health and agriculture sector, the federal government of Nigeria has requested for a fresh loan of $600 million from the same bank.

The Nigeria’s Finance Minister of State, Yerima Lawan Ngama said “Nigeria is in talks to secure a $600 million no-interest loan for infrastructure work from the Islamic Development Bank (IDB) which would be repaid in three to four years”

The Economic Confidential gathered that the Nigeria’s application for the facility has passed the IDB scrutiny and received positive approval from the Board.

After a meeting with delegates from the IDB, the Minister said the new loan application will exclude the $370 million private sector loan already extended to Nigeria by the IDB for other developmental projects.

According to the minister, the $600 million loan is intended for “investment in social infrastructure and power like the provision of turbines for the Zungeru power station.”

Ngama added that the facilities will also be used for the construction of health centres; urban and rural water works; housing and rehabilitation of some state universities.

“The facility will attract no interest and has a long repayment plan long enough for the recovery of the investment before repayment,” he said.

Nigeria became a member of the Islamic Development Bank in 2005 during the administration of President Olusegun Obasanjo. The country currently holds a $30 billion authorised share capital and an equity stake of $2.28 billion representing 7.6 per cent in the Bank.

The interest-free loan system would help ease the burden on businesses in the country. CBN spokesperson, M. Abdullai, confirming that Jaiz Bank had started its operations, said it was the Soludo administration that gave the bank its operating licence under the same guidelines that other banks operate.