Reactions As Alex Otti Secures $125 Million Loan From Islamic Bank

Bashir Ahmad, former aide to ex-President Muhammadu Buhari, has commended Governor Alex Otti of Abia State for securing a $125 million loan from the Islamic Development Bank (IDB) to finance capital projects in the state.

In a post via his official X handle on Wednesday, Ahmad said the decision of the Abia governor to secure the project loan from the international bank was a wise decision.

 

He said the utilization of Islamic finance could enable Abia state to undertake essential capital projects without the long-term financial strain that interest-bearing loans might impose.

 

The former presidential aide wrote: “Governor Alex Otti has indeed made a wise decision as he secured a $125 million loan from the Islamic Development Bank (IDB) to finance capital projects in Abia.

Islamic banking, being interest-free, aligns with the ethical guidelines of Islam, which perceive money as a means of exchange rather than a commodity that can generate income through interest. This principle ensures that financial transactions contribute directly to economic activities and development without the burden of interest, which can sometimes be prohibitive.

“Islamic finance emphasizes partnership and the sharing of profit and risks. This approach encourages a sense of mutual responsibility and ethical investment.

“In the context of Abia State, the utilization of Islamic finance can provide several advantages. It can enable the state to undertake essential capital projects without the long-term financial strain that interest-bearing loans might impose.”