The International Finance Corporation has reached an agreement with the Central Bank of Nigeria for local currency financing worth $1bn.
The IFC is a member of the World Bank Group that offers investment, advisory, and asset-management services to encourage private-sector development in less developed countries.
The apex bank disclosed the deal on Monday through a statement seen by NewsNGR.
Thr CBN said IFC which has a $2.13bn active portfolio in Nigeria has agreed to increase local currency financing to enable private businesses in Nigeria to grow and thrive.
The apex bank said the partnership would allow IFC to manage currency risks and increase its investment in the Nigerian naira across priority sectors of the economy.
The target areas are agriculture, housing, infrastructure, energy, small and medium enterprises and the creative and youth economy.
The apex bank said, “IFC aims to significantly scale up its financing of critical sectors in Nigeria, with a goal of providing more than $1bn in the coming years. Many of these sectors require local currency financing, and IFC’s partnership with the CBN is a key tool in expanding access.”
Thr CBN Governor, Yemi Cardoso said the collaboration would significantly deliver innovative development initiatives.
Cardoso said, “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 programs. It will serve as a catalyst for economic growth and advance the Federal Government’s agenda for economic diversification.”
IFC Managing Director, Makhtar Diop, said supporting small businesses in Nigeria is essential to the institution.
Diop said, “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.”