The Central Bank of Nigeria (CBN) and the International Finance Corporation (IFC), a member of the World Bank Group, have signed an agreement to boost local currency financing for businesses and mitigate foreign exchange risks.
In a joint statement on Monday, the agencies said the partnership aims to unlock more than $1 billion in investments across key sectors, including agriculture, housing, infrastructure, energy, small and medium-sized enterprises (SMEs), and the creative industry.
“IFC, a member of the World Bank Group, and the Central Bank of Nigeria have signed an agreement to increase local currency financing to enable private businesses in Nigeria to grow and thrive,” the statement said.
CBN Governor Yemi Cardoso described the initiative as a “pioneering” step toward innovative financing solutions. He said the deal aligns with Nigeria’s goal of diversifying the economy and fostering sustainable growth.
Makhtar Diop, Managing Director of IFC, emphasized the importance of naira-based financing. “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,” he said.
Nigeria, with a portfolio of $2.13 billion, is the IFC’s second-largest investment destination in Africa.
—Ezinwanne Onwuka reports for TruthNigeria from Abuja.
