The International Finance Corporation (IFC), a member of the World Bank Group, and the Central Bank of Nigeria (CBN) have signed an agreement to increase local currency financing for private businesses in Nigeria by $1 billion. This partnership aims to support priority sectors like agriculture, housing, infrastructure, energy, small and medium enterprises (SMEs), and the creative and youth economy by expanding access to Nigerian naira financing.
In a statement, IFC highlighted the importance of the deal, noting that managing currency risks will enable it to channel more investment into Nigeria’s critical sectors. The agreement aligns with IFC’s goal to significantly increase its financing across essential areas, providing over $1 billion in the coming years.
Governor Yemi Cardoso of the Central Bank of Nigeria emphasized the significance of the collaboration, calling it a step forward in the CBN’s efforts to deliver innovative economic development initiatives. He noted that this approach marks a shift from traditional intervention programs, aiming instead to leverage partnerships with third-party service providers, which will advance Nigeria’s economic diversification efforts.
IFC Managing Director Makhtar Diop stressed the importance of expanding affordable local currency financing for small businesses in Nigeria, highlighting the impact on economic growth and job creation. “This partnership with the CBN is critical for us to address the increasing demand for diverse funding options and to better manage currency risks,” he said.
With an active portfolio of investments in Nigeria totaling $2.13 billion—the second highest in Africa—IFC prioritizes local currency financing to meet the needs of emerging markets. The organization is committed to leveraging innovative financial instruments and strengthening partnerships to expand local currency financing across these markets.
