The Central Bank of Nigeria (CBN) and the International Finance Corporation (IFC), part of the World Bank Group, have signed a deal to boost local currency financing in Nigeria with a $1 billion investment.
Announced in Washington DC, this partnership aims to improve financing opportunities for private businesses in key sectors such as agriculture, housing, infrastructure, energy, small and medium enterprises, and the youth economy.
The IFC stated that this collaboration will help manage currency risks and increase investments in Nigerian Naira, promoting sustainable economic growth. The goal is to provide over $1 billion in financing in the coming years, focusing on sectors requiring local currency support.
CBN Governor Mr. Yemi Cardoso praised the initiative as a “pioneering effort” that will unlock essential long-term local currency financing for Nigerian businesses. He highlighted that this collaboration signifies progress in the CBN’s commitment to innovative development initiatives through reputable third-party service providers, moving beyond traditional intervention programs. It is expected to act as a catalyst for economic growth and support the Federal Government’s diversification agenda.
IFC Managing Director Mr. Makhtar Diop added that expanding access to affordable local currency financing for small businesses is crucial for addressing the growing demand for diverse funding options and better managing currency risk. This partnership will enhance lending in Nigerian Naira, fostering economic growth and job creation throughout the country.
With an active portfolio of $2.13 billion in Nigeria—the second largest in Africa—the IFC prioritizes local currency financing. Diop assured that the IFC would utilize innovative financial instruments and partnerships to meet 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 operates in over 100 countries. In fiscal year 2024, it committed a record $56 billion to private companies and financial institutions in developing nations, aiming to create sustainable opportunities and reduce poverty.
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