The International Finance Corporation (IFC), the private sector arm of the World Bank, has signed an agreement with the Central Bank of Nigeria (CBN) to enhance local financing, enabling private businesses in Nigeria to grow.
In a statement released yesterday, the IFC announced that the goal of this partnership is to provide more than $1 billion in financing in the coming years.
According to the statement, “The partnership will allow IFC to manage currency risks and increase its investment in Nigerian Naira across priority sectors of the economy, including agriculture, housing, infrastructure, energy, small and medium enterprises, and the creative and youth economy.”
The IFC highlighted that it currently has an active investment portfolio in Nigeria amounting to $2.13 billion, making it the second highest in Africa. Local currency financing is identified as a key priority.
The statement further elaborated, “IFC aims to significantly scale up its financing of critical sectors in Nigeria, with a goal of providing more than $1 billion in the coming years. Many of these sectors require local currency financing, and IFC’s partnership with the CBN is a crucial tool in expanding access.”
IFC’s Managing Director, Makhtar Diop, stated, “The partnership aims to address funding options and access to affordable local currency financing for small businesses in Nigeria, which is essential for IFC to meet the increasing demand for diverse funding options and better manage currency risk. Our partnership with the Central Bank of Nigeria will enhance lending in Nigerian Naira, fostering economic growth and creating jobs across the country.”
Olayemi Cardoso, Governor of the CBN, expressed that the agreement will significantly contribute to improving the country’s economic growth.