Korede Abdullah in Lagos
Nigeria’s private sector is poised for growth, thanks to a landmark agreement between the International Finance Corporation (IFC) and the Central Bank of Nigeria (CBN).
The partnership, signed by IFC Managing Director Makhtar Diop and CBN Governor Yemi Cardoso, aims to boost local currency financing, enabling businesses to thrive in key sectors such as agriculture, housing, infrastructure, energy, and small and medium enterprises.
The IFC-CBN collaboration will provide naira-based financing to critical sectors, mitigating currency risks and improving access to long-term, affordable funding.
This move is expected to unlock economic growth and support the Federal Government’s agenda for economic diversification.
With an active portfolio of $2.13 billion in Nigeria, the IFC is committed to scaling up its financing to over $1 billion in the coming years.
The agreement is a significant step towards addressing the challenges faced by Nigerian businesses, particularly in accessing local currency financing.
By managing currency risks and increasing investment in the Nigerian naira, the IFC-CBN partnership will help create jobs, promote economic development, and improve the lives of Nigerians.
As Makhtar Diop noted, expanding access to affordable local currency financing is essential for supporting small businesses and driving economic growth.
The statement read in part, “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,” Governor of the CBN, Yemi Cardoso said about the deal.
“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.
“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,” the IFC Managing Director, Makhtar Diop also commented.
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 investments in Nigeria of up to $2.13 billion—the second highest in Africa—local currency financing is a key priority for IFC.
“IFC will continue to leverage innovative financial instruments and strengthen partnerships to meet the growing demand for more local currency financing in emerging markets.”
