CBN and IFC Join Forces to Boost Nigeria’s Economy
The International Finance Corporation (IFC), a member of the World Bank Group, has partnered with the Central Bank of Nigeria (CBN) to expand access to local currency financing for private businesses in Nigeria. Announced on October 28, 2024, the partnership aims to provide long-term funding at sustainable rates to key sectors of the Nigerian economy.
This collaboration empowers the IFC to increase investments in Nigerian naira across vital sectors, including agriculture, housing, energy, infrastructure, small and medium enterprises (SMEs), and the creative and youth economy. IFC has pledged to invest over $1 billion in these sectors in the coming years, with a focus on supporting businesses and mitigating currency risks.
Governor Yemi Cardoso of the CBN described the initiative as “pioneering,” marking a new chapter in the CBN’s efforts to implement innovative development strategies. “This partnership demonstrates significant progress, moving beyond traditional intervention programs to unlock much-needed financing for private businesses,” Cardoso said.
Makhtar Diop, Managing Director of IFC, highlighted the importance of affordable local currency financing for small businesses. “By expanding access to naira-denominated loans, we aim to drive economic growth, create jobs, and meet the rising demand for diverse funding options,” Diop noted.
With an active portfolio of $2.13 billion in investments in Nigeria – the second highest in Africa – IFC prioritizes local currency financing to meet the needs of emerging markets. The agreement is expected to strengthen Nigeria’s financial landscape, facilitating job creation and fostering growth across multiple sectors.
This partnership not only reflects IFC’s commitment to deploying innovative financial solutions but also positions Nigeria to better navigate its economic development journey. Through enhanced lending in Nigerian naira, the collaboration promises to unlock new opportunities for businesses, ensuring long-term economic sustainability and resilience. FBN Holdings Rebounds to 1 Trillion Valuation amid Capital
