- CBN and IFC partner to increase local currency financing in Nigeria with $1 billion investment.
- Partnership aims to enhance financing opportunities for private businesses in key sectors.
- Sectors targeted: agriculture, housing, infrastructure, energy, SMEs, and youth economy.
- IFC to manage currency risks and increase Nigerian Naira investments.
- Goal: Provide over $1 billion in financing to sectors needing local currency funding.
- CBN Governor praises partnership as “pioneering initiative” for long-term local currency financing.
- IFC’s active portfolio in Nigeria stands at $2.13 billion.
- Local currency financing prioritized to support economic diversification and job creation.
The Central Bank of Nigeria (CBN) and International Finance Corporation (IFC), a World Bank Group member, have partnered to boost local currency financing in Nigeria with a $1 billion investment. This Washington DC-announced partnership aims to increase private sector financing opportunities in key sectors like agriculture, housing, infrastructure, energy, small and medium enterprises, and youth economy .
The IFC views local currency financing as crucial for sustainable private sector investment and growth of local capital markets . This partnership enables IFC to manage currency risks and increase Nigerian Naira investments, fostering sustainable economic growth. The goal is to provide over $1 billion in financing to sectors needing local currency funding.
CBN Governor, Mr. Yemi Cardoso, praised the partnership as a “pioneering initiative” unlocking critical long-term local currency financing for Nigerian private businesses. IFC Managing Director, Mr. Makhtar Diop, emphasized the importance of affordable local currency financing for small businesses and managing currency risk.
Key Benefits:
• Increased financing opportunities for private businesses in priority sectors
• Improved currency risk management for IFC investments
• Enhanced lending in Nigerian Naira, fostering economic growth and job creation
• Support for economic diversification, advancing the Federal Government’s agenda
With an active portfolio of $2.13 billion in Nigeria, IFC’s focus on local currency financing remains a top priority. They will leverage innovative financial instruments and partnerships to meet emerging markets’ demand for local currency financing .
