IFC, CBN collaborate to boost local currency financing
The International Finance Corporation (IFC), a member of the World Bank Group and the Central Bank of Nigeria (CBN) have signed a deal to boost local currency financing in Nigeria.
The pact is poised to thrive by unlocking over $1bn in investments across key sectors of the country’s economy.
This was announced on Monday during a joint press statement by the two finance giants.
The statement said that with a portfolio of $2.13bn, Nigeria is the second largest beneficiary of IFC’s financing in Africa.
The agreement signed by the CBN Governor, Yemi Cardoso, and the IFC Managing Director, Makhtar Diop, will stimulate a naira-based financing in sectors such as energy, infrastructure, housing, agriculture, small and medium enterprises as well as Nigeria’s youth and creative industries.
It will also help private businesses to thrive by improving access to long-term, affordable local currency funding essential for reducing currency risks.
“IFC, a member of the World Bank Group, and the Central Bank of Nigeria have signed an agreement to increase local currency financing to enable private businesses in Nigeria to grow and thrive,” the statement said.
“The partnership will allow IFC to manage currency risks and increase its investment in Nigerian naira across priority sectors of the economy, including agriculture, housing, infrastructure, energy, small and medium enterprises and the creative and youth economy,” it added.
“IFC aims to significantly scale up its financing of critical sectors in Nigeria, with a goal of providing more than $1bn in the coming years. Many of these sectors require local currency financing, and IFC’s partnership with the CBN is a key tool in expanding access.”
Cardoso described the partnership as a “pioneering initiative” that reflects CBN’s shift towards innovative financing solutions through collaboration with reputable global institutions.
He stressed that the deal was in tandem with the Federal Government’s agenda to diversify the economy and galvanise sustainable growth.
Diop who also expressed IFC’s commitment to fostering economic growth, stated: “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,” he said.
Kindly share this story:
