IFC and CBN Partner to Unlock $1bn in Local Currency Financing for Nigerian Economy

In a significant step toward boosting Nigeria’s economy, the International Finance Corporation (IFC), a member of the World Bank Group, and the Central Bank of Nigeria (CBN) have announced a new partnership to expand local currency financing, aiming to unlock over $1 billion in investments across essential sectors.

The agreement, signed by IFC Managing Director Makhtar Diop and CBN Governor Yemi Cardoso, will provide much-needed naira-based funding to key sectors, including agriculture, infrastructure, housing, energy, small and medium-sized enterprises (SMEs), and Nigeria’s creative and youth industries. This move is designed to support private businesses by improving access to long-term, affordable naira financing, a critical step in mitigating currency risks and stabilizing investment in local markets.

In a joint statement, the IFC and CBN highlighted the partnership’s focus on managing currency risks and increasing IFC’s investments within the Nigerian economy. “This agreement between the IFC and CBN is set to empower private businesses in Nigeria to grow and thrive, boosting local currency financing across priority sectors,” the statement read.

Governor Yemi Cardoso described the partnership as a “pioneering initiative” that aligns with Nigeria’s economic diversification agenda. He highlighted that the CBN is increasingly focused on innovative financing solutions, especially those that involve collaboration with reputable global institutions. This effort, he added, supports the Federal Government’s goals of fostering sustainable growth through diversified economic activities.

IFC Managing Director Makhtar Diop reinforced the corporation’s commitment to fostering Nigerian economic growth by increasing access to local currency funding. “Providing affordable local currency financing to small businesses in Nigeria is essential for addressing the demand for diverse funding options while effectively managing currency risks,” Diop explained. “Our collaboration with the CBN will enhance lending in Nigerian naira, promoting economic growth and creating jobs across the country.”

The IFC’s investment portfolio in Nigeria currently stands at $2.13 billion, making Nigeria the second-largest recipient of IFC financing in Africa. This expanded partnership with the CBN underscores the IFC’s commitment to investing in critical sectors that support Nigeria’s economic resilience and sustainable development.