Photo Caption: Olayemi Cardoso, Governor of the Central Bank of Nigeria (right) and Wale Edun (middle), sharing insights into Nigeria’s economy, ongoing reforms, and the strategic initiatives shaping the nation’s future with key global and regional investors organised by the CBN and the Federal Ministry of Finance during the recently concluded 2024 IMF & World Bank Annual Meetings.
The International Finance Corporation, a member of the World Bank Group, and the Central Bank of Nigeria (CBN), on Monday announced the signing of an agreement to increase financing for the country’s Naira to enable private businesses grow and thrive.
The partnership will also allow the IFC manage currency risks and increase its investment in the Nigerian Naira across priority sectors of the economy, including agriculture, housing, infrastructure, energy, small and medium enterprises and the creative and youth economy.
According to a joint statement by both organisations, IFC aims to significantly scale up its financing of critical sectors in Nigeria, with a goal of providing
more than $1bn in the coming years.
Many of these sectors, it noted, require local currency financing, and IFC’s partnership with the CBN is a key tool in expanding access.
Commenting on the deal, the CBN Governor, Yemi Cardoso said “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.”
On his part, said Makhtar Diop, IFC’s Managing Director stressed 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,” he stressed.
With an active portfolio of investments in Nigeria of up to $2.13 billion—the second highest in Africa, the statement noted that local currency financing is a key priority for IFC, and that it will continue to leverage innovative financial instruments and strengthen partnerships to meet the growing demand for more local currency financing in emerging markets.
