The International Finance Corporation (IFC), a member of the World Bank Group, has joined forces with the Central Bank of Nigeria (CBN) to promote local currency financing, aiming to unlock over $1 billion in investments across crucial sectors of the Nigerian economy.
According to a joint press release issued on Monday, the agreement was signed by IFC Managing Director Makhtar Diop and CBN Governor Yemi Cardoso. It will facilitate naira-based financing for various sectors, including agriculture, infrastructure, housing, energy, small and medium enterprises, and the creative industries focused on youth.
This partnership aims to empower private businesses by improving access to long-term, affordable local currency funding, which is vital for reducing currency risks.
The statement highlighted that the collaboration will allow the IFC to manage currency risks and boost its investments in Nigerian naira across priority sectors, ultimately supporting the growth of businesses.
Governor Cardoso described the partnership as a “pioneering initiative,” underscoring the CBN’s commitment to innovative financing solutions through collaborations with respected global institutions. He noted that the agreement aligns with the Federal Government’s strategy to diversify the economy and drive sustainable growth.
Diop emphasized IFC’s dedication to promoting economic growth, stating, “Expanding access to affordable local currency financing for small businesses in Nigeria is essential to meet the increasing demand for diverse funding options and to effectively manage currency risk.”
The statement further indicated that Nigeria, with a portfolio of $2.13 billion, is the second-largest recipient of IFC financing in Africa.
Peoplesmind
