The Central Bank of Nigeria (CBN) and the International Finance Corporation (IFC), a member of the World Bank Group, have signed an agreement to enhance local currency financing in Nigeria through a $1 billion investment.
Announced in Washington DC, this partnership aims to improve financing opportunities for private businesses across key sectors in Nigeria, including agriculture, housing, infrastructure, energy, small and medium enterprises, and the youth economy.
The IFC detailed in a statement that this collaboration will enable it to manage currency risks while increasing investments in Nigerian Naira, ultimately fostering sustainable economic growth. The goal is to provide over $1 billion in financing in the coming years, specifically targeting sectors that require local currency funding.
CBN Governor, Mr. Yemi Cardoso, hailed the partnership as a “pioneering initiative” that will unlock critical long-term local currency financing for Nigerian businesses. He stated, “This collaboration marks significant progress in the CBN’s commitment to delivering innovative development initiatives through reputable third-party service providers, moving beyond traditional intervention programs. It will serve as a catalyst for economic growth and advance the Federal Government’s agenda for economic diversification.”
IFC Managing Director Mr. Makhtar Diop emphasized the importance of expanding access to affordable local currency financing for small businesses in Nigeria, noting that this is essential to meet the growing demand for diverse funding options and to better manage currency risk. He affirmed, “Our partnership with the Central Bank of Nigeria will enhance lending in Nigerian Naira, fostering economic growth and creating jobs across the country.”
With an active portfolio of $2.13 billion in Nigeria—the second largest in Africa—the IFC continues to prioritize local currency financing. Diop assured that the IFC will leverage innovative financial instruments and partnerships to address the demand for increased local currency financing in emerging markets.
As the largest global development institution focused on the private sector in emerging markets, the IFC works across more than 100 countries. In fiscal year 2024, the IFC committed a record $56 billion to private companies and financial institutions in developing countries, aiming to create sustainable opportunities and alleviate poverty.
