The International Finance Corporation (IFC) has gone into a deal to increase local currency financing to grow private businesses in Nigeria, the World Bank Group affiliate announced on Monday
The Corporation said the partnership would allow it to manage currency risks and increase its investment portfolio in Naira across priority sectors of the Nigerian economy, including agriculture, housing, infrastructure, energy, small and medium enterprises and the creative and youth economy.
The IFC said its aim with the deal with CBN included significantly scaling up its
financing of critical sectors in Nigeria, with the ultimate goal of providing more than $1billion in the coming years.
Many of these sectors, the Corporation noted, required local currency financing to operate, adding that its partnership with
the CBN was a key tool in expanding access to more small businesses.
The CBN Governor, Yemi Cardoso said:“This pioneering initiative between the IFC and CBN will unlock much-needed long-term local currency financing for private businesses in Nigeria at economically viable rates.”
Cardoso said the collaboration with CBN marked significant progress in its commitment to delivering innovative development initiatives through reputable third-party service providers, moving beyond traditional intervention programmes.
He said the deal would also serve as a catalyst for economic growth and advance the Federal Government’s agenda for economic diversification,” said
The IFC Managing Director. Makhtar 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. Our partnership with the
Central Bank of Nigeria will enhance lending in Nigerian Naira, fostering economic growth and creating jobs across the country.”
With an active portfolio of investments in Nigeria of up to $2.13 billion —the second highest inAfrica — Diop said local currency financing was a key priority for IFC.
He said IFC would continue to leverage innovative financial instruments and strengthen partnerships to meet the growing demand for more local currency financing in emerging markets.
