CBN, IFC to Support Nigerian Businesses with Over $1 billion

The International Finance Corporation (IFC) and the Central Bank of Nigeria (CBN) have launched an initiative to inject over $1 billion in naira-denominated financing into Nigeria’s private sector.

The initiative targets key sectors such as agriculture, infrastructure, energy, and the creative economy.

The IFC, a member of the World Bank Group, announced this collaboration in a press statement on Monday.

This partnership, designed to boost local currency financing, aims to address the growing demand among Nigerian businesses for sustainable funding at competitive rates.

Governor of the Central Bank of Nigeria, Yemi Cardoso, described the agreement as a transformative approach to development funding, emphasising that it moves beyond traditional interventions by working with third-party service providers.

“This pioneering initiative between the IFC and CBN will unlock much-needed long-term local currency financing for private businesses in Nigeria at economically viable rates.

“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,” Mr Cardoso said.

IFC’s Managing Director, Makhtar Diop, stated that the partnership is crucial in scaling IFC’s financing capabilities in Nigeria, one of its largest portfolios in Africa, valued at $2.13 billion.

He highlighted that the venture would not only support small businesses but also provide IFC with tools to manage currency risks, enabling expanded investments across Nigeria.

“Expanding access to affordable local currency financing for small businesses in Nigeria is essential for IFC to address the increasing 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 said.