The International Finance Corporation and the Central Bank of Nigeria have come to an agreement to boost local currency financing in Nigeria, aiming to unlock over $1 billion in investments across various crucial sectors. The deal, signed by IFC Managing Director Makhtar Diop and CBN Governor Yemi Cardoso, is set to provide naira-based funding to areas like agriculture, infrastructure, housing, energy, small and medium enterprises, as well as Nigeria’s youth and creative industries.
This collaboration will support private businesses by enhancing their access to long-term, affordable local currency funding, which is vital for managing currency risks. The partnership is designed to aid private businesses in Nigeria to grow and prosper by expanding access to local currency financing in key sectors of the economy.
Both parties have expressed their commitment to scaling up financing in critical sectors of Nigeria, with a target of providing over $1 billion in the upcoming years. The initiative is seen as a significant step towards economic growth and job creation across the country. The partnership was praised by Cardoso as a groundbreaking effort that mirrors CBN’s embrace of innovative financing solutions through global collaborations, aligning with the government’s agenda to diversify the economy and stimulate sustainable growth.
Diop reiterated IFC’s dedication to driving economic growth by expanding access to affordable local currency financing for small businesses in Nigeria. This move is crucial to address the rising demand for diverse funding options and better manage currency risks. Nigeria stands as the second-largest beneficiary of IFC’s financing in Africa, with a portfolio totaling $2.13 billion.