IFC, CBN Partner to Drive $1bn Investment in Key Nigerian Sectors
By Patience Ikpeme
The International Finance Corporation (IFC) plans to boost its funding for critical sectors in Nigeria by providing over $1 billion in the coming years.
To achieve this, the IFC has partnered with the Central Bank of Nigeria (CBN) to enhance local currency financing, supporting private sector growth and economic resilience.
This collaboration allows the IFC to manage currency risks and increase its investments in naira across key areas, including agriculture, housing, infrastructure, energy, small and medium-sized enterprises (SMEs), and the creative economy. Local currency financing is expected to provide businesses with a stable financial environment, reducing exposure to exchange rate fluctuations.
CBN Governor Yemi Cardoso noted the impact of the partnership, stating, “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. It will serve as a catalyst for economic growth and advance the Federal Government’s agenda for economic diversification.”
IFC Managing Director Makhtar Diop stated that, “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 in Nigeria valued at $2.13 billion—the second highest in Africa—this partnership reflects IFC’s priority on local currency financing, a move that aligns with the Federal Government’s efforts to diversify the economy and reduce reliance on oil.
