IFC, CBN sign deal to boost local currency financing in Nigeria

The International Finance Corporation, a member of the World Bank Group and the Central Bank of Nigeria have announced an agreement to scale up local currency financing, unlocking over $1bn in investments across key sectors of the Nigerian economy.

This was according to a joint press statement from the IFC and the CBN on Monday.

The agreement, signed by IFC Managing Director Makhtar Diop and CBN Governor Yemi Cardoso, will provide naira-based financing to sectors such as agriculture, infrastructure, housing, energy, small and medium enterprises, and Nigeria’s youth and creative industries.

This deal will enable private businesses to thrive by improving access to long-term, affordable local currency funding, essential for mitigating currency risks.

The statement read, “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 partnership will allow IFC to manage currency risks and increase its investment in Nigerian naira across priority sectors of the economy, including agriculture, housing, infrastructure, energy, small and medium enterprises and the creative and youth economy.