The International Finance Corporation (IFC), a member of the World Bank Group, and the Central Bank of Nigeria (CBN) have entered into a strategic partnership to increase local currency financing in Nigeria.
This move aims to support private businesses across key sectors of the Nigerian economy, including agriculture, housing, infrastructure, energy, small and medium enterprises (SMEs), and the creative and youth economy.
The agreement will enable IFC to manage currency risks while expanding its investment in the Nigerian naira, facilitating more than $1 billion in financing over the coming years. This funding is essential for boosting critical sectors that require long-term local currency financing.
CBN Governor Yemi Cardoso highlighted the significance of this collaboration, stating, “This pioneering initiative between IFC and CBN will unlock much-needed long-term local currency financing for private businesses in Nigeria at economically viable rates. It will serve as a catalyst for economic growth and advance the Federal Government’s agenda for economic diversification.”
Makhtar Diop, Managing Director of IFC, noted the importance of expanding access to affordable local currency financing, emphasizing that it will enhance lending in naira and support job creation across the country. Diop said, “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 an active portfolio of $2.13 billion in Nigeria—second highest in Africa—local currency financing is a top priority for IFC as it seeks to support the country’s economic development through innovative financial instruments and partnerships.
