In a landmark agreement, the International Finance Corporation, IFC, a member of the World Bank Group, is partnering with the Central Bank of Nigeria, CBN, to enhance local currency financing aimed at supporting the growth of private businesses in Nigeria.
The CBN announced the partnership on Monday, highlighting that it will enable the IFC to better manage currency risks and significantly boost its investment in the Nigerian naira across key economic sectors, including agriculture, housing, infrastructure, energy, small and medium enterprises, and the creative and youth economy.
The IFC is targeting a substantial increase in financing for critical sectors in Nigeria, aiming to provide over $1 billion in the coming years. This initiative will focus on sectors that require local currency financing, with the IFC-CBN collaboration serving as a crucial mechanism for expanding access to these funds. CBN Governor, l Yemi Cardoso remarked: “This pioneering initiative will unlock vital long-term local currency financing for Nigerian businesses at competitive rates.”
READ ALSO : CBN reaffirms commitment to financial stability amid bank licence concerns
Furthermore, Cardoso emphasized that this partnership reflects the CBN’s commitment to fostering innovative development solutions through reputable partners, moving beyond traditional intervention strategies. The initiative is expected to act as a catalyst for economic growth and support the Federal Government’s diversification efforts.
IFC Managing Director Makhtar Diop also expressed the importance of this collaboration, stating that expanding access to affordable local currency financing for small businesses is critical for addressing the growing demand for diverse funding solutions and managing currency risk effectively. “Our partnership with the CBN will enhance lending in Nigerian naira, thereby promoting economic growth and job creation nationwide,” Diop added.
With an active investment portfolio in Nigeria amounting to $2.13 billion—the second-largest in Africa—local currency financing remains a key priority for the IFC. Diop reaffirmed the organization’s commitment to leveraging innovative financial instruments and strengthening partnerships to meet the increasing demand for local currency financing in emerging markets.
Credible News.ng
