The International Finance Corporation (IFC), a member of the World Bank Group, and the Central Bank of Nigeria (CBN) have signed an agreement to expand local currency financing in Nigeria.
According to a CBN statement on Monday, this collaboration will enable the IFC to manage currency risks while increasing its investments in the Nigerian naira across key sectors.
The priority areas include agriculture, housing, infrastructure, energy, small and medium enterprises (SMEs), and the creative and youth economy, aiming to enhance economic growth and private sector development in the country.
IFC aims to significantly scale up its financing of critical sectors in Nigeria, to provide more than $1bn in the coming years. Many of these sectors require local currency financing, and IFC’s partnership with the CBN is a key tool in expanding access.
“This pioneering initiative between the IFC and CBN will unlock much-needed long-term local currency financing for private businesses in Nigeria at economically viable rates,” Governor of the CBN, Yemi Cardoso said about the deal.
“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 catalyze economic growth and advance the Federal Government’s agenda for economic diversification.
“Expanding access to affordable local currency financing for small businesses in Nigeria is essential for IFC to address the increasing demand for diverse funding options and to better manage currency risk,” the IFC Managing Director, Makhtar Diop also commented.