…IFC To Support Initiative With Over $1Bn
The International Finance Corporation (IFC), the private sector lending arm if the World Bank Group, and the Central Bank of Nigeria (CBN) have signed an agreement to increase local currency financing for the purposes of supporting current efforts of private businesses in the country to grow.
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.
Based on the pact, 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 as many of the sectors require local currency financing, and IFC’s partnership with the CBN is a key tool in expanding their access to improved funds.
Speaking on the pact, CBN Governor, Yemi Cardoso, enthused: “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.
“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”, Cardoso stressed.
In his remarks on the deal, IFC Managing Director, Makhtar Diop, 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”, the banker added.
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 and it will continue to leverage innovative financial instruments and strengthen partnerships to meet the growing demand for more local currency financing in emerging markets.
