The International Finance Corporation (IFC), a member of the World Bank Group, and the Central Bank of Nigeria (CBN) announced a landmark agreement on Monday to scale up local currency financing, unlocking over $1 billion in investments across critical sectors of the Nigerian economy. The partnership, signed by IFC Managing Director Makhtar Diop and CBN Governor Yemi Cardoso, aims to bolster sectors such as agriculture, infrastructure, housing, energy, small and medium enterprises (SMEs), and Nigeria’s youth and creative industries.
The agreement is expected to provide naira-based financing, enhancing private sector access to long-term, affordable funding and reducing currency risk—an essential factor in promoting sustainable economic growth.
The statement from both institutions highlighted the significance of the initiative: “The partnership will allow IFC to manage currency risks and increase its investment in Nigerian naira across priority sectors, including agriculture, housing, infrastructure, energy, SMEs, and the creative and youth economy.”
Governor Cardoso described the partnership as a “pioneering initiative” that underscores CBN’s commitment to innovative financing solutions through collaboration with international financial institutions. He emphasized that the agreement supports the Nigerian government’s efforts to diversify the economy and promote sustainable growth.
Makhtar Diop, IFC Managing Director, reinforced IFC’s dedication to fostering Nigeria’s economic resilience, noting, “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 a portfolio of $2.13 billion, Nigeria is currently the second-largest beneficiary of IFC’s financing in Africa. Through this collaboration, the CBN and IFC aim to create a more stable and supportive financial landscape for Nigerian businesses, advancing national goals for economic diversification and sustainable development.
