“Strengthening Nigeria’s Economy: IFC Partners with CBN to Enhance Local Currency Financing”

Babatunji Wusu –

The International Finance Corporation (IFC) has entered into a partnership with the Central Bank of Nigeria (CBN) aimed at increasing local currency financing to support the growth of private businesses in Nigeria. This collaboration, announced on Monday, will enable the IFC to better manage currency risks and boost its investments in Nigerian naira across key sectors such as agriculture, housing, infrastructure, energy, small and medium enterprises, and the creative and youth economy.

CBN Governor Yemi Cardoso highlighted that the IFC intends to significantly enhance its financing in Nigeria, targeting over $1 billion in the coming years. Many sectors require local currency financing, making this partnership crucial for expanding access to necessary funds.

“This pioneering initiative between the IFC and CBN will unlock essential long-term local currency financing for private businesses in Nigeria at economically viable rates,” Cardoso stated. He emphasized that this collaboration represents a major step forward in the CBN’s commitment to implementing innovative development initiatives through reputable third-party service providers, moving beyond traditional intervention programs. It is expected to act as a catalyst for economic growth and support the Federal Government’s economic diversification agenda.

IFC Managing Director Makhtar Diop underscored the importance of expanding access to affordable local currency financing for small businesses in Nigeria to meet the rising demand for diverse funding options and 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,” Diop noted. He added that the IFC will continue to utilize innovative financial instruments and strengthen partnerships to satisfy the growing need for local currency financing in emerging markets.