ABUJA, Nigeria (VOICE OF NAIJA)- The International Finance Corporation (IFC), part of the World Bank Group, and the Central Bank of Nigeria (CBN) have announced a partnership to expand local currency.
financing, unlocking more than $1 billion in investments across critical sectors of Nigeria’s economy.
According to a joint statement released Monday, the IFC and CBN highlighted that the agreement, signed by IFC Managing Director Makhtar Diop and CBN Governor Yemi Cardoso, aims to provide naira-based funding to key areas, including agriculture, infrastructure, housing, energy, small and medium enterprises, and Nigeria’s youth and creative industries.
This initiative is designed to support private businesses by enhancing access to long-term, affordable local currency financing, which is crucial for managing currency-related risks.
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.
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“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.
“IFC aims to significantly scale up its financing of critical sectors in Nigeria, with a goal of providing 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.”
In the statement, Cardoso described the partnership as a “pioneering initiative” that demonstrates the CBN’s commitment to innovative financing solutions in collaboration with reputable global institutions.
He highlighted that the agreement supports the Federal Government’s goals to diversify the economy and drive sustainable growth.
Makhtar Diop also expressed IFC’s dedication to promoting economic development, stating “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 highlighted that, with a portfolio totaling $2.13 billion, Nigeria ranks as the second-largest recipient of IFC financing in Africa.