The International Finance Corporation (IFC), the private sector arm of the World Bank, has signed an agreement with the Central Bank of Nigeria (CBN) to increase local financing to enable private businesses in Nigeria grow.
In a statement yesterday, IFC said the goal of the partnership is to provide more than $1 billion in financing in coming years.
According to the statement, “ 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.”
IFC noted that it has an active portfolio of investments in Nigeria of up to $2.13 billion — the second highest in Africa — and local currency financing is a key priority.
The statement added, “IFC aims to significantly scale up its financing of critical sectors in Nigeria, with a goal of providing more than $1 billion 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”.
According to the IFC’s managing director, Makhtar Diop, “ The partnership aims to address funding options and 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. https://investdata.com.ng/ifc-cbn-announce-partnership-to-raise-nigerian-investment-by-1bn-boost-naira-financing/Our partnership with the Central Bank of Nigeria will enhance lending in Nigerian naira, fostering economic growth and creating jobs across the country”.
On his part, Olayemi Cardoso, governor of the CBN, said the agreement will go a long way to improving the country’s economic growth.
He stated: “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 also said it will continue to leverage innovative financial instruments and strengthen partnerships to meet the growing demand for more local currency financing in emerging markets.
Adeleke Damilola (ACTION) is a versatile content writer with expertise in news writing and a seasoned media professional and broadcast specialist. Currently serving as News Editor for DNews Info, Damilola is also the CEO of the ACTION brand, committed to shaping lives and establishing a legacy of excellence for present and future generations.
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