The International Finance Corporation (IFC), a member of the World Bank Group, and the Central Bank of Nigeria (CBN) have formalized an agreement to increase local currency financing in Nigeria, aimed at boosting the growth of private businesses.
In a statement on Monday, the CBN highlighted that this partnership will allow the IFC to mitigate currency risks and scale up its investments in Nigerian naira across critical economic sectors, including agriculture, housing, infrastructure, energy, small and medium enterprises (SMEs), and the creative and youth economy.
The IFC has committed to deploying over $1 billion in financing across priority sectors in Nigeria in the coming years, with a focus on expanding access to local currency funding. This collaboration is viewed as pivotal in addressing local businesses’ needs for long-term, affordable 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. “It represents a key milestone in our strategy to advance Nigeria’s economic diversification, moving beyond traditional intervention programs to leverage reputable third-party partnerships.”
IFC Managing Director Makhtar Diop emphasized the importance of local currency financing in promoting sustainable economic growth and job creation in Nigeria. “Our collaboration with the Central Bank of Nigeria enhances access to naira-denominated lending, which is vital for expanding opportunities for small businesses and managing currency risks,” Diop noted. “With an active portfolio in Nigeria valued at approximately $2.13 billion—the second largest in Africa—IFC prioritizes local currency financing to meet growing demand and support economic resilience.”
Diop added that the IFC would continue leveraging innovative financial tools and partnerships to expand local currency financing across emerging markets, further underscoring the institution’s commitment to Nigeria’s economic development trajectory.
