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The International Finance Corporation (IFC), a World Bank Group member, and Nigeria’s Central Bank (CBN) have signed an agreement to expand local currency financing, aiming to generate over $1 billion in investments across key sectors of Nigeria’s economy.
In a joint statement released on Monday, IFC Managing Director Makhtar Diop and CBN Governor Yemi Cardoso highlighted that this partnership will deliver naira-based funding to areas such as agriculture, infrastructure, housing, energy, small and medium enterprises (SMEs), and Nigeria’s youth and creative industries.
This initiative is designed to support private sector growth by improving access to affordable, long-term naira financing, which is crucial for reducing exposure to currency risks.
The statement outlined, “IFC, in collaboration with the Central Bank of Nigeria, will increase local currency financing to bolster the growth and resilience of private businesses in Nigeria. The partnership enables IFC to manage currency risk and boost its naira investments across strategic sectors like agriculture, housing, infrastructure, energy, SMEs, and the youth and creative economy.”
IFC’s goal through this collaboration is to significantly expand financing to critical sectors, aiming to mobilize more than $1 billion in the coming years, with a particular focus on areas that require naira-based funding.
CBN Governor Cardoso described the partnership as an “innovative initiative” that aligns with CBN’s strategy to foster financing solutions through collaboration with globally reputable organizations. He emphasized that this effort aligns with the government’s vision for economic diversification and sustainable growth.
IFC’s Makhtar Diop also underscored the corporation’s commitment to driving economic development, stating, “Access to affordable naira-based financing for small businesses in Nigeria is a critical priority. Our collaboration with the CBN will expand naira lending, supporting economic growth and job creation nationwide.”
According to the statement, Nigeria, with an IFC investment portfolio of $2.13 billion, stands as the second-largest recipient of IFC financing in Africa.
