The International Finance Corporation (IFC), a member of the World Bank Group, has signed an agreement with the Central Bank of Nigeria (CBN) to boost local currency financing, supporting the growth and success of private businesses in Nigeria.
According to a statement by the CBN on Monday, this partnership will enable the IFC to better manage currency risks and expand its investments in the Nigerian naira, targeting key economic sectors such as agriculture, housing, infrastructure, energy, small and medium enterprises, and the creative and youth economy.
The IFC plans to significantly increase its financing in these vital areas in Nigeria, aiming to invest over $1 billion in the coming years. Many of these sectors rely on local currency financing, making the IFC’s collaboration with the CBN essential for broadening access to funds.
“This pioneering initiative between the IFC and CBN will unlock much-needed long-term local currency financing for private businesses in Nigeria at economically viable rates,” Governor of the CBN, Yemi Cardoso said about the deal.
“This collaboration marks significant progress in the CBN’s commitment to delivering innovative development initiatives through reputable third-party service providers, moving beyond traditional intervention programs. It will serve as a catalyst for economic growth and advance the Federal Government’s agenda for economic diversification.
“Expanding access to affordable local currency financing for small businesses in Nigeria is essential for IFC to address the increasing demand for diverse funding options and to better manage currency risk,” the IFC Managing Director, Makhtar Diop also commented.
“Our partnership with the Central Bank of Nigeria will enhance lending in Nigerian naira, fostering economic growth and creating jobs across the country.
“With an active portfolio of investments in Nigeria of up to $2.13 billion—the second highest in
Africa—local currency financing is a key priority for IFC.
IFC will continue to leverage innovative financial instruments and strengthen partnerships to meet the growing demand for more local currency financing in emerging markets,” Diop added.