The International Finance Corporation and the Central Bank of Nigeria have signed an agreement to provide $1 billion in local currency financing, aiming to stimulate the Nigerian economy and support private sector growth.
The focus of the IFC, a part of the World Bank Group, is to encourage the growth of the private sector in developing countries by providing investments and advisory support.
Through this collaboration, the company aims to increase investments in important industries in Nigeria by reducing currency risks and improving access to financing denominated in naira.
The CBN stated on Monday that this partnership will create fresh funding opportunities in agriculture, housing, infrastructure, energy, SMEs, and the creative economy.
The IFC plans to boost its investment in Nigeria significantly, with over $1 billion set aside for the future.
CBN Governor, Yemi Cardoso, commended the deal as a transformative move, emphasizing its significance in providing sustainable long-term funding to private companies.
Cardoso stated that the collaboration between the IFC and the CBN will provide essential local currency funding for private companies, stimulating economic development and supporting the government’s diversification plans.
He observed that the collaboration represents a move away from conventional intervention programs towards more creative development approaches involving external service providers.
IFC Managing Director Makhtar Diop emphasized the institution’s dedication to supporting small businesses, crucial for Nigeria’s economic growth.
Increasing availability of inexpensive local currency loans for small enterprises is essential to address the rising need for various funding alternatives and handling currency uncertainties.
Diop stated that our collaboration with the CBN will bolster lending in the local currency, boosting economic development and generating employment nationwide.
The IFC, with a current portfolio of $2.13 billion in Nigeria, plans to use this new Programme to increase investments in key sectors for national growth, providing necessary funding for businesses to succeed.
The collaboration between the IFC and the CBN is anticipated to set a precedent for upcoming partnerships, boosting financial inclusion and fostering sustainable economic growth throughout Nigeria.
