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WASHINGTON, DC, USA, October 28, 2024—IFC, a member of the World Bank Group, and the Central Bank of Nigeria (CBN) enter into an agreement to increase local currency lending to enable private businesses in Nigeria to grow and prosper. Signed.
The partnership will enable IFC to manage currency risks and increase investment in the Nigerian naira across priority sectors of the economy, including agriculture, housing, infrastructure, energy, small and medium-sized enterprises, and the creative and youth economies.
IFC aims to significantly expand lending to key sectors in Nigeria, providing more than $1 billion over the next few years. Many of these areas require local currency financing, and the IFC-CBN partnership is an important tool to expand access.
“This pioneering initiative between IFC and the CBN will enable private businesses in Nigeria to access much-needed long-term local currency financing at economically viable interest rates,” said Emi Cardoso, Governor of the Central Bank of Nigeria. It will become.” “This partnership marks a major advance in the CBN’s efforts to go beyond traditional intervention programs and deliver innovative development initiatives through trusted third-party service providers that act as catalysts for economic growth and It will advance the federal government’s plan to diversify the economy.”
IFC Managing Director Makhtar Diop said: “Expanding access to affordable local currency financing for small and medium-sized businesses in Nigeria helps IFC address the growing demand for diverse financing options and “This is essential to better manage risks.” “Our partnership with the Central Bank of Nigeria will enhance lending in Nigerian naira, boost economic growth and create jobs across Nigeria.”
With an active investment portfolio in Nigeria of up to $2.13 billion, the second-highest in Africa, local currency lending is a key priority for IFC.
IFC continues to leverage innovative financial products and strengthen partnerships to meet the growing demand for expanded local currency financing in emerging markets.
