The Central Bank of Nigeria (CBN) has taken practical step towards fast-tracking the growth of private businesses in Nigeria, with a partnership deal it has just had with International Finance Corporation (IFC), which is a member of the World Bank Group.
The partnership agreement, which was struck in Washington D.C., USA, today, October 28, is aimed at increasing local currency financing to enable private businesses in Nigeria to grow and thrive.
A statement emanating from the endorsement room in the U.S, said that the partnership would 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 as well as the creative and youth economy.
“IFC aims to significantly scale up its financing of critical sectors in Nigeria, with a goal of providing more than $1 billion 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.
“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.”
Confirming the development, the CBN Governor, Yemi Cardoso said: “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.”
This was even as the IFC Managing Director, Makhtar Dop said: “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.”
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 pledged to continue to leverage innovative financial instruments and strengthen partnerships to meet the growing demand for more local currency financing in emerging markets.
