The International Finance Corporation, a member of the World Bank Group and the Central Bank of Nigeria has announced an agreement aimed at increasing local currency financing. This initiative is set to unlock over $1 billion in investments across vital sectors of the Nigerian economy.
In a joint press statement released by the IFC and CBN, the new agreement is aimed at providing naira-based financing to key sectors, including agriculture, infrastructure, housing, energy, small and medium enterprises, and Nigeria’s youth and creative industries.
The agreement, signed by IFC Managing Director Makhtar Diop and CBN Governor Yemi Cardoso, seeks to enhance private sector growth by improving access to long-term, affordable funding in local currency, which is crucial for mitigating currency risks. The IFC plans to significantly increase its financing for critical sectors in Nigeria, targeting over $1 billion in the coming years.
The statement read, “IFC, a member of the World Bank Group, and the Central Bank of Nigeria have signed an agreement to increase local currency financing to enable private businesses in Nigeria to grow and thrive.
“The partnership will allow IFC to manage currency risks and increase its investment in Nigerian naira across priority sectors of the economy, including agriculture, housing, infrastructure, energy, small and medium enterprises and the creative and youth economy.
In the statement, Cardoso described the partnership as a “pioneering initiative” that reflects CBN’s shift towards innovative financing solutions through collaboration with reputable global institutions.
He highlighted that the agreement supports the Federal Government’s agenda to diversify the economy and catalyze sustainable growth.
Diop also reaffirmed the IFC’s commitment to promoting economic growth, noting,“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.
“Our partnership with the Central Bank of Nigeria will enhance lending in Nigerian naira, fostering economic growth and creating jobs across the country.”
The statement further indicated that with a portfolio of $2.13bn, Nigeria is the second-largest beneficiary of IFC’s financing in Africa.
