The International Finance Corporation has partnered with the Central Bank of Nigeria to enhance local currency financing, supporting the growth of private businesses in Nigeria.
This agreement, signed by IFC’s Hlazo Mkandawire and CBN’s Hakama Sidi Ali, aims to manage currency risks and increase investments in the Nigerian naira across key sectors such as agriculture, housing, infrastructure, energy, small and medium enterprises, and the creative and youth economy.
The Central Bank of Nigeria Governor, Yemi Cardoso, said many sectors in Nigeria need local currency financing, making the IFC’s partnership with the CBN a vital tool for expanding access to necessary funds.
According to him, the collaboration aims to bolster investments in critical areas of the economy, ultimately fostering growth and stability for private businesses.
“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.
“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 said.
Also commenting on the partnership, 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.
“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 of $2.13 billion in Nigeria—the second largest in Africa—local currency financing is a key priority for the IFC. This focus aims to support the sustainable growth of private businesses and enhance economic stability within the country.
Th IFC, a member of the World Bank Group, is the largest global development institution dedicated to the private sector in emerging markets.
