IFC, CBN Partner to Boost Local Currency Financing

The International Finance Corporation (IFC), part of the World Bank Group, has entered into an agreement with the Central Bank of Nigeria (CBN) to boost local currency financing for private businesses in Nigeria. 

This partnership is intended to support key sectors, including agriculture, infrastructure, housing, energy, and small and medium-sized enterprises (SMEs), addressing the demand for funding that is both accessible and viable for businesses operating in naira.

Through this collaboration, IFC will be able to mitigate currency risks while scaling up investments in Nigeria’s economy by targeting essential areas that drive growth and employment. 

The organisation has set a goal to inject over $1 billion in financing over the coming years, focusing on sectors that particularly benefit from local currency availability.

Governor Yemi Cardoso of the CBN noted that the agreement shows progress in Nigeria’s approach to enabling economic growth. 

He emphasised that the partnership between IFC and CBN will provide sustainable long-term financing solutions to private businesses at rates that support their expansion, bringing conventional intervention programmes to a more structured economic diversification model.

IFC’s Managing Director, Makhtar Diop, also commented on the initiative, pointing to the importance of providing affordable financing options in naira to meet the rising need for diversified funding solutions. He noted that this collaboration would spur lending activities within Nigeria, furthering job creation and economic stability.

The IFC currently maintains an investment portfolio in Nigeria, valued at approximately $2.13 billion, making it one of the largest portfolios in Africa. Local currency financing has become a priority for the organisation, with a vision to continue exploring innovative financial tools to expand its support across emerging markets.

As part of its global mission, the IFC mobilising private capital to create sustainable economic opportunities. The institution’s recent commitment of $56 billion to private companies in fiscal year 2024 is a drive to address development challenges in various countries through market-driven solutions and strategic partnerships.

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