IFC, CBN Partner to Boost Local Currency Financing in Nigeria
The International Finance Corporation (IFC), the private sector arm of the World Bank, has signed an agreement with the Central Bank of Nigeria (CBN) to increase local financing to enable private businesses in Nigeria grow.
In a statement yesterday, IFC said the goal of the partnership is to provide more than $1 billion in financing in coming years.
According to the statement, “ 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.”
IFC noted that it has an active portfolio of investments in Nigeria of up to $2.13 billion — the second highest in Africa — and local currency financing is a key priority.
The statement added, “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”.
On his part, Olayemi Cardoso, governor of the CBN, said the agreement will go a long way to improving the country’s economic growth.
He stated: “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
