Catalyzing Growth and Diversification in Nigeria's Economy

Expanding Access to Local Currency Financing

The partnership between the IFC and CBN will enable private businesses in Nigeria to access much-needed long-term local currency financing at economically viable rates. This innovative initiative will unlock a significant influx of capital, allowing enterprises to invest in critical sectors such as agriculture, housing, infrastructure, energy, small and medium-sized businesses, and the creative and youth economy.By managing currency risks and increasing investments in the Nigerian naira, the IFC aims to scale up its financing across these priority areas. This strategic move addresses the growing demand for diverse funding options and better management of currency fluctuations, empowering businesses to thrive in the local market.

Fostering Economic Diversification and Job Creation

The collaboration between the IFC and CBN marks a significant milestone in the Central Bank's commitment to delivering innovative development initiatives. By partnering with reputable third-party service providers, the CBN is moving beyond traditional intervention programs and positioning itself as a catalyst for economic growth and diversification.This partnership will serve as a driving force behind the Federal Government's agenda for economic diversification, unlocking new opportunities and creating jobs across the country. As Makhtar Diop, IFC Managing Director, aptly stated, "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."

Strengthening Partnerships and Leveraging Innovative Financing

The IFC's active portfolio of investments in Nigeria, valued at up to $2.13 billion, the second-highest in Africa, underscores the organization's commitment to the country's economic growth. By leveraging innovative financial instruments and forging strategic partnerships, the IFC aims to meet the growing demand for local currency financing in emerging markets.This collaboration with the CBN represents a significant step forward in the IFC's efforts to provide tailored solutions that address the unique financing needs of businesses in Nigeria. As the partnership unfolds, it is poised to serve as a model for other developing economies seeking to unlock the power of local currency financing and drive sustainable economic progress.

Unlocking Opportunities Across Key Sectors

The IFC-CBN partnership will have a far-reaching impact, touching upon various sectors that are crucial to Nigeria's economic development. From agriculture and housing to infrastructure and energy, the influx of local currency financing will enable businesses to invest in growth, innovation, and job creation.Moreover, the partnership will extend its reach to small and medium-sized enterprises, as well as the creative and youth economy. These sectors hold immense potential for driving economic diversification and empowering the next generation of entrepreneurs and innovators.As Governor Yemi Cardoso of the Central Bank of Nigeria aptly 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 a significant milestone in the CBN's commitment to delivering innovative development initiatives, paving the way for a more prosperous and inclusive economic future for the country.