The International Finance Corporation (IFC) and the Central Bank of Nigeria (CBN) have launched an initiative to inject more than $1 billion in naira-denominated financing into Nigeria's private sector.
The initiative targets key sectors such as agriculture, infrastructure, energy and the creative economy.
The IFC, a member of the World Bank Group, announced this collaboration in a press release on Monday.
This partnership, designed to boost local currency financing, aims to address the growing demand among Nigerian businesses for sustainable financing at competitive rates.
Governor of the Central Bank of Nigeria, Yemi Cardoso, described the agreement as a transformative approach to development financing, emphasizing that it goes beyond traditional interventions by working with external service providers.
“This pioneering initiative between IFC and the 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 deliver innovative development initiatives through accredited third-party service providers, going 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.
Article page with financial support promotion
IFC Managing Director Makhtar Diop said the partnership is crucial to expanding IFC's financial capabilities in Nigeria, one of its largest portfolios in Africa, valued at $2.13 billion.
He highlighted that the company would not only support small businesses but also provide IFC with tools to manage currency risks, allowing for expanded investments across Nigeria.
“Expanding access to affordable local currency financing for small businesses in Nigeria is essential for IFC to address the growing demand for diverse financing options and better manage currency risk.
“Our partnership with the Central Bank of Nigeria will enhance Nigerian naira lending, fostering economic growth and creating jobs across the country,” he said.