The International Finance Corporation (IFC) and the Central Bank of Nigeria (CBN) have announced an agreement to boost local currency financing in Nigeria.
This partnership is expected to unlock over $1 billion in investments across key sectors of the Nigerian economy, including agriculture, infrastructure, housing, energy, small and medium enterprises, and the youth and creative industries.
The agreement, signed by IFC Managing Director Makhtar Diop and CBN Governor Yemi Cardoso, will provide naira-based financing to enable private businesses to thrive. This deal is a game-changer for Nigeria’s economy, as it will improve access to long-term, affordable local currency funding, essential for mitigating currency risks.
According to the joint press statement, the partnership will allow IFC to manage currency risks and increase its investment in Nigerian naira across priority sectors of the economy. IFC aims to significantly scale up its financing of critical sectors in Nigeria, with a goal of providing more than $1 billion in the coming years.
CBN Governor Yemi Cardoso described the partnership as a “pioneering initiative” that reflects the bank’s shift towards innovative financing solutions through collaboration with reputable global institutions. This deal aligns with the Federal Government’s agenda to diversify the economy and catalyze sustainable growth.
IFC’s Managing Director, Makhtar Diop, also expressed his commitment to fostering economic growth, stating that 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.
With a portfolio of $2.13 billion, Nigeria is the second-largest beneficiary of IFC’s financing in Africa.
