The Central Bank of Nigeria (CBN) and the International Finance Corporation (IFC), the World Bank’s private sector arm, have inked a deal to expand local finance to support the expansion of private companies in Nigeria.
IFC stated in a statement yesterday that the cooperation aims to finance more than $1 billion over the next few years.
IFC is partnering with Nigeria to manage currency risks and increase investment in Nigerian Naira across priority sectors like small and medium enterprises, creative and youth economy, housing, infrastructure, and energy. IFC focuses on local currency financing and has an active portfolio of investments in Nigeria worth up to $2.13 billion. The partnership between IFC and Nigeria will help stimulate economic growth and create job opportunities in the country. This collaboration is crucial for promoting sustainable development and reducing poverty in Nigeria.
IFC intends to greatly expand its financing of critical sectors in Nigeria, with a goal of providing more than $1 billion in the coming years,” the statement continued. Local currency funding is necessary for many of these industries, and the IFC’s collaboration with the CBN is a crucial instrument for increasing access.
The partnership intends to address funding options, and access to reasonably priced local currency financing for small businesses in Nigeria is crucial for IFC to meet the growing demand for a variety of funding options and to better manage currency risk, said Makhtar Diop, managing director of the IFC. By strengthening lending in Nigerian naira, our collaboration with the Central Bank of Nigeria will promote economic expansion and job creation throughout the nation.
According to CBN Governor Olayemi Cardoso, the accord will significantly boost the nation’s economic expansion.
“This innovative partnership between the IFC and CBN will provide much-needed long-term local currency financing at competitive rates for private enterprises in Nigeria,” he said.
“This partnership represents a major advancement in the CBN’s dedication to implementing creative development projects via reliable outside service providers, going beyond conventional intervention programs.
The collaboration is expected to enhance the country’s investment climate and facilitate sustainable growth in various sectors. By leveraging the expertise and resources of the IFC, Nigeria aims to attract more foreign direct investment and foster a conducive environment for businesses to thrive.
