The International Finance Corporation (IFC) and the Central Bank of Nigeria (CBN) have announced a new initiative to boost Nigeria’s private sector with over $1 billion in naira-denominated financing. Targeting vital sectors like agriculture, infrastructure, energy, and the creative economy, this collaboration aims to deliver sustainable, locally sourced funding to drive economic growth and diversification.
CBN Governor Yemi Cardoso emphasized the transformative potential of this partnership, stating that it shifts beyond traditional approaches by partnering 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,” Cardoso said. He added that this move underscores the CBN’s dedication to innovative development funding and aligns with the federal government’s goal for economic diversification.
As part of the World Bank Group, IFC sees this as a significant expansion of its financing capabilities in Nigeria, one of IFC’s largest portfolios in Africa, valued at $2.13 billion. IFC Managing Director Makhtar Diop highlighted the venture’s benefits for small businesses and explained that it would help IFC better manage currency risks in the region. “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,” Diop said. “Our partnership with the Central Bank of Nigeria will enhance lending in Nigerian naira, fostering economic growth and creating jobs across the country.”
This initiative sets the stage for broader economic opportunities, positioning Nigeria’s private sector for growth while supporting the government’s economic diversification agenda.
