The International Finance Corporation (IFC) plans to provide more than $1 billion in the coming years to scale up financing of critical sectors in Nigeria.
This financial commitment geared toward fostering economic growth and stability, will prioritize investments in sectors vital to Nigeria’s long-term development, such as agriculture, housing, infrastructure, energy, small and medium-sized enterprises (SMEs) and the creative and youth economy.
To drive this initiative, the IFC, a member of the World Bank Group, has signed an agreement with the Central Bank of Nigeria (CBN) to increase local currency financing.
By focusing on financing in Nigerian naira, rather than relying on foreign currencies, the partnership hopes to create a more stable environment for Nigerian businesses and reduce the currency risks that often hinder long-term planning and growth.
Local currency financing allows businesses to secure funding in naira, providing a buffer against exchange rate fluctuations that can strain repayment capacity.
The IFC-CBN partnership will give businesses access to naira-denominated loans at economically viable rates, addressing one of the biggest challenges facing Nigerian enterprises: currency volatility.
