The Central Bank of Nigeria (CBN) and the International Finance Corporation (IFC), a member of the World Bank Group, have signed an agreement to increase local currency financing in Nigeria through a $1 billion investment.
This partnership, announced in Washington DC, aims to enhance financing opportunities for private businesses across priority sectors in Nigeria, such as agriculture, housing, infrastructure, energy, small and medium enterprises, and the youth economy.
The IFC explained in a statement that this partnership would allow it to manage currency risks and increase its investments in Nigerian Naira, fostering sustainable growth in the economy. The goal is to provide over $1 billion in financing in the coming years, targeting sectors that need local currency funding.
CBN Governor, Mr. Yemi Cardoso, praised the partnership as a “pioneering initiative” that would unlock critical long-term local currency financing for private businesses in Nigeria. “This collaboration marks significant progress in the CBN’s commitment to delivering innovative development initiatives through reputable third-party service providers, moving beyond traditional intervention programs. It will serve as a catalyst for economic growth and advance the Federal Government’s agenda for economic diversification,” Cardoso stated.
IFC Managing Director Mr. 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 $2.13 billion in Nigeria—the second largest in Africa—the IFC’s focus on local currency financing remains a top priority. Diop assured that the IFC would leverage innovative financial instruments and partnerships to meet the demand for more local currency financing in emerging markets.
IFC, as part of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets, working across more than 100 countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, aiming to create sustainable opportunities and alleviate poverty.
