Finance Minister Seeks Public-Private Collaboration to Boost Non-Interest Finance Sector
By Patience Ikpeme
The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has stated that close collaboration between the public and private sectors is crucial for mobilizing sustainable, long-term capital for national development.
The Minister’s remarks came during a meeting in his Abuja office with a high-level delegation from Lotus Capital Limited, led by its Managing Director, Mrs. Hajara Adeola.
The meeting focused on exploring ways to expand Nigeria’s non-interest finance sector as a key driver of inclusive economic growth. Mr. Edun commended Lotus Capital for its leadership in promoting this form of finance in the country.
The discussions centred on innovative initiatives such as a Non-Interest Real Estate Investment Fund and the establishment of a regular sovereign sukuk issuance programme.
Non-interest finance, also known as Islamic finance, operates on principles that prohibit interest (riba) and promote risk-sharing, as well as the avoidance of speculative investments.
A sukuk is a financial certificate, similar to a conventional bond, that is structured to be compliant with these principles. Instead of earning interest, sukuk holders receive a share of the revenues or profits generated by the underlying asset or project that the sukuk is financing.
The ministry’s statement indicated that these initiatives are designed to attract ethical investment into critical infrastructure, boost market liquidity, and broaden access to finance for under-served communities.
The discussion also reflects the government’s commitment to exploring innovative financial solutions for national development, recognizing the importance of public-private partnerships in driving progress within the non-interest finance sector.
