The International Finance Corporation (IFC), part of the World Bank Group, has partnered with the Central Bank of Nigeria (CBN) to boost local currency financing.
According to a statement from the CBN’s Acting Director of Corporate Communications, the agreement aims to support the growth of private businesses in Nigeria.
Sidi-Ali noted that the IFC plans to significantly increase its financing in key sectors, targeting over one billion dollars in investments in the coming years.
Priority sectors identified include agriculture, housing, infrastructure, energy, small and medium enterprises, and the creative economy.
“Many of these sectors require local currency financing, and the IFC’s collaboration with the CBN is crucial for expanding access,” she said.
This partnership will enable the IFC to manage currency risks and enhance its investments in the Nigerian Naira across these priority areas.
CBN Governor Yemi Cardoso emphasized that this innovative initiative would unlock vital long-term local currency financing for private enterprises in Nigeria at sustainable rates.
“This collaboration signifies a major advancement in the CBN’s commitment to innovative development initiatives through reputable third-party providers, moving beyond traditional programs. It will act as a catalyst for economic growth and support the Federal Government’s agenda for economic diversification,” he stated.
Makhtar Diop, IFC Managing Director, remarked that expanding access to affordable local currency financing for small businesses is essential to meet the growing demand for diverse funding options and effectively manage currency risk.
“Our partnership with the CBN will enhance lending in Nigerian Naira, driving economic growth and job creation nationwide,” he said.
With an active investment portfolio of up to 2.13 billion dollars in Nigeria—the second highest in Africa—local currency financing remains a top priority for the IFC.
Diop added that the corporation will continue to leverage innovative financial instruments and strengthen partnerships to address the increasing demand for local currency financing in emerging markets.
The News Agency of Nigeria (NAN) reports that the IFC is the largest global development institution focused on the private sector in emerging markets, operating in over 100 countries and utilizing its capital, expertise, and influence to create opportunities in developing regions.
In fiscal year 2024, the IFC committed a record 56 billion dollars to private companies and financial institutions in developing countries, aiming to mobilize private sector solutions and capital for a world free of poverty on a livable planet.