The private sector arm of the World Bank, the International Finance Corporation (IFC), has signed an agreement with the Central Bank of Nigeria (CBN) to improve local financing to enable private business in Nigeria flourish.

IFC disclosed in a statement on Monday, October 28, 2024, that the aim of the partnership is to provide over $1 billion in financing in coming years.

Part of the statement read: “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 stated that it has an active portfolio of investments in Nigeria that amounts to about $2.13 billion — the second highest in Africa.

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”.

IFC’s managing director, Makhtar Diop also stated: “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.

"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, revealed that 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.”