Nigeria: CBN and IFC Collaborate to Boost $1 Billion Funding for Nigerian Businesses

The Central Bank of Nigeria (CBN) and the International Finance Corporation (IFC), the World Bank’s private sector arm, have entered into a partnership aimed at expanding financing options to empower Nigeria’s private sector. This collaboration seeks to mobilize over $1 billion in funding for key economic sectors over the coming years, offering Nigerian businesses enhanced access to local currency financing.

According to a statement from the IFC, this initiative will help manage currency risks and enable increased investment in the Nigerian Naira, specifically targeting critical sectors such as agriculture, housing, infrastructure, energy, small and medium enterprises (SMEs), and the creative and youth economies. The IFC, which holds an active investment portfolio in Nigeria valued at $2.13 billion—its second-largest in Africa—views local currency financing as a priority to stimulate economic resilience and growth.

“IFC’s aim is to significantly expand its financing in Nigeria’s essential sectors, with a target of providing more than $1 billion in the coming years. Local currency financing is essential to meet the demands of these sectors, and our partnership with the CBN is key to this expansion,” the IFC stated.

Makhtar Diop, Managing Director of the IFC, emphasized the importance of accessible, affordable local currency financing for Nigerian SMEs: “Our partnership with the CBN addresses the growing demand for diversified funding and currency risk management solutions. This will bolster lending in Nigerian Naira, driving economic development and creating job opportunities nationwide.”

CBN Governor Olayemi Cardoso highlighted the collaboration’s impact on economic growth: “This initiative with the IFC will unlock vital, long-term local currency funding for private businesses in Nigeria at sustainable rates. It marks a significant shift in the CBN’s commitment to development through reputable third-party collaborations, moving beyond traditional intervention programs. This effort will stimulate economic growth and support the government’s diversification agenda.”

The IFC also reiterated its commitment to leveraging innovative financial tools and strengthening partnerships to meet the rising demand for local currency financing in emerging markets like Nigeria.