Jeddah, Kingdom of Saudi Arabia, 18 December 2021 – The Board of Executive Directors of the Islamic Development Bank (IsDB) in its 343^rd meeting has approved a total of US$ 1.6 billion of funding for new development projects in 19 member countries, including US$ 180.27 million for two major projects in Nigeria.

Chaired by IsDB President and Chairman of the Board, the meeting on 18 December,gave the greem light to financing US$ 150.52 million for “IsDB Support for Special Agro-Industrial Processing Zone (SAPZ)” project in addition to US$ 29.75 million for the Nigeria segment of the “Front End Engineering Design (FEED) Phase II Study” project for the Nigeria - Morocco Gas Pipeline.

During the session, Dr. Muhammad Al Jasser reiterated the Bank’s full commitment and continued support for member countries to respond to their development challenges and get their economies back on track. He also stated that in so doing, the IsDB Group continues to cooperate with its global development partners including the MDBs community and the Arab Coordination Group, amongst others, to mobilize new resources. Once operational, it would enable producers, processors, and the entire agricultural value chain in Nigeria, to become more functional and profitable. The project is expected to increase household income for the beneficiaries, create 185,000 new jobs, and enhance food security by increasing the yields of key crops.

It supports a larger Program of the Government led by African Development Bank (AfDB) for an inclusive and sustainable agro-industrial development to enhance the competitiveness of the agriculture sector. IsDB financing for SAPZ Project will cover almost all activities in FCT, Kano and Kwara amounting to US$ 55.40 million, Kano US$ 41.90 million and Kwara US$ 53.22 million respectively. Agricultural productivity and production in Kano State is being co-financed by IFAD.

On the other hand, the development objective of the FEED Phase II Study Project (Nigeria segment) is to prepare for the construction works of the gas pipeline and improve its bankability to attract potential international sponsors from the private sector. As per the agreement between the Governments of Morocco and Nigeria, both countries will equally share the overall project cost which is estimated at US$ 90.1 million.

The IsDB is supporting the Moroccan contribution and participating in the financing of the project for an amount of US$ 15.45 million. For the Nigerian Contribution, the IsDB has approved the financing of US$ 29.75 million which will bring the contribution of the Bank to 50% of the total cost of the FEED study of the Nigeria - Morocco Gas Pipeline.