The International Finance Corporation (IFC), a member of the World Bank Group, has partnered with the Central Bank of Nigeria (CBN) to enhance local currency financing aimed at supporting the growth of private businesses in Nigeria.
According to a statement released by the CBN on Monday, this partnership will enable the IFC to manage currency risks while increasing its investments in Nigerian naira across vital sectors of the economy, including agriculture, housing, infrastructure, energy, small and medium enterprises, and the creative and youth economy.
The IFC plans to significantly scale up its financing efforts, targeting over $1 billion in investments over the coming years. Many sectors will benefit from this initiative, which is a crucial step toward expanding access to local currency financing.
“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,” said CBN Governor Yemi Cardoso.
He emphasized that this collaboration represents a significant advancement in the CBN’s commitment to innovative development initiatives through trusted third-party service providers, moving beyond traditional intervention programs.
Cardoso added that it will act as a catalyst for economic growth and support the Federal Government’s agenda for economic diversification.
IFC Managing Director Makhtar Diop echoed this sentiment, stating, “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.”
He further noted, “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 investment portfolio in Nigeria totaling $2.13 billion—the second highest in Africa—Diop underscored that local currency financing remains a key priority for the IFC.
“We will continue to leverage innovative financial instruments and strengthen partnerships to meet the growing demand for more local currency financing in emerging markets,” he added.
