IFC and Central Bank of Nigeria Partner to Unlock $1 Billion in Local Currency Financing for Key Economic Sectors
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The International Finance Corporation (IFC), part of the World Bank Group, has partnered with the Central Bank of Nigeria (CBN) to boost local currency financing, aiming to unlock over $1 billion in investments for vital sectors of the Nigerian economy. This agreement was announced in a joint press release on Monday, signed by IFC Managing Director Makhtar Diop and CBN Governor Yemi Cardoso.
The initiative will provide naira-based financing to sectors such as agriculture, infrastructure, housing, energy, small and medium enterprises, and Nigeria’s youth and creative industries. By improving access to long-term, affordable local currency funding, the deal is designed to help private businesses thrive and mitigate currency risks.
The statement noted that the partnership will allow IFC to manage currency risks effectively while increasing its investments in naira across these priority sectors. The IFC aims to significantly scale up its financing efforts, with a target of providing over $1 billion in the coming years to support local businesses.
Governor Cardoso described the agreement as a “pioneering initiative” that aligns with the CBN’s strategy of adopting innovative financing solutions through partnerships with reputable global institutions. He emphasized that the deal supports the Federal Government’s goal of diversifying the economy and promoting sustainable growth.
Diop reiterated IFC’s commitment to enhancing economic growth by expanding access to affordable financing for small businesses in Nigeria. He highlighted the increasing demand for diverse funding options and the importance of this partnership in fostering economic development and job creation throughout the country.
With a portfolio totaling $2.13 billion, Nigeria ranks as the second-largest recipient of IFC financing in Africa.
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