The International Finance Corporation (IFC), an affiliate of the World Bank Group, has entered into a strategic partnership with the Central Bank of Nigeria (CBN) to expand access to local currency financing for Nigeria’s private sector. This agreement aims to meet a pressing demand for naira-based funding in sectors pivotal to Nigeria’s economy, including agriculture, infrastructure, housing, energy, and small and medium-sized enterprises (SMEs).
This collaboration will allow the IFC to manage currency risks effectively while scaling up investments that bolster key economic areas. Over the next few years, the organization intends to inject over $1 billion in local currency financing, a move expected to stimulate business growth, enhance employment, and strengthen Nigeria’s overall economic stability.
CBN Governor Yemi Cardoso hailed the agreement as a milestone in Nigeria’s economic policy evolution. According to Cardoso, this partnership with the IFC will promote sustainable, long-term financing solutions for private enterprises, supporting economic expansion and transitioning Nigeria’s financial intervention programs into a more structured framework for economic diversification.
IFC Managing Director Makhtar Diop noted that the partnership aims to provide affordable naira-based funding, which is essential for meeting the increasing need for diversified financial solutions in Nigeria. He highlighted that this collaboration could energize lending within the country, fueling job creation and contributing to broader economic stability.
With a current Nigerian portfolio valued at approximately $2.13 billion, the IFC’s investments in the country rank among its largest in Africa. The focus on local currency financing aligns with the IFC’s ongoing mission to support emerging markets, where innovative financial tools and solutions can drive growth.
This initiative is part of the IFC’s broader global commitment, which saw a $56 billion allocation to private sector projects in fiscal year 2024. Through market-driven solutions and strategic partnerships, the IFC aims to tackle development challenges worldwide, mobilizing private capital to create lasting economic opportunities.
