The International Finance Corporation (IFC) has announced the signing of an agreement with the Central Bank of Nigeria (CBN) aimed at boosting local financing to support the growth of private enterprises.
As a member of the World Bank Group, IFC revealed in a statement on Monday that the partnership seeks to provide over $1 billion in financing in the upcoming years. The collaboration will help manage currency risks and increase investments in the naira across key sectors of the economy, including agriculture, housing, infrastructure, energy, small and medium enterprises (SMEs), as well as the creative and youth economy.
IFC also highlighted its active investment portfolio in Nigeria, which stands at $2.13 billion, making it the second highest in Africa.
The statement further noted, “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.”
Makhtar Diop, managing director of IFC, commented on the partnership, emphasising its intent to address funding options. He stated that increasing access to affordable local currency financing for small businesses is vital to meet the rising demand for diverse funding options and to better manage currency risk.
“Our partnership with the Central Bank of Nigeria will enhance lending in Nigerian naira, fostering economic growth and creating jobs across the country,” he added.
Olayemi Cardoso, governor of the CBN, expressed that the agreement will significantly bolster the nation’s economic growth. He described the initiative as a groundbreaking effort that will unlock essential long-term local currency financing for private enterprises in Nigeria at economically viable rates.
Cardoso stated, “This collaboration marks significant progress in the CBN’s commitment to delivering innovative development initiatives through reputable third-party service providers, moving beyond traditional intervention programmes.
“It will serve as a catalyst for economic growth and advance the Federal Government’s agenda for economic diversification.”
Additionally, IFC affirmed its intention to continue utilising innovative financial instruments and strengthening partnerships to meet the increasing demand for local currency financing in emerging markets.
Frances Ibiefo
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