The International Finance Corporation (IFC), a member of the World Bank Group and the Central Bank of Nigeria (CBN) have signed an agreement to boost local currency financing, unlocking over $1bn in investments across key sectors of the Nigerian economy.

This was according to a joint press statement on Monday from the IFC and the CBN.

The agreement was signed by IFC Managing Director Makhtar Diop and CBN Governor Olayemi Cardoso.

The deal will provide naira-based financing to sectors such as agriculture, infrastructure, housing, energy, small and medium enterprises, and Nigeria’s youth and creative industries.

It will enable private businesses to thrive by improving access to long-term, affordable local currency funding, essential for mitigating currency risks.

The statement read: IFC, a member of the World Bank Group, and the Central Bank of Nigeria have signed an agreement to increase local currency financing to enable private businesses in Nigeria to grow and thrive.

“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 aims to significantly scale up its financing of critical sectors in Nigeria, with a goal of providing more than $1bn 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.”

Commenting on the deal, Cardoso described the partnership as a “pioneering initiative” that reflects CBN’s shift towards innovative financing solutions through collaboration with reputable global institutions.

The CBN boss stated that the deal aligns with the Federal Government’s agenda to diversify the economy and catalyse sustainable growth.

The IFC MD, Diop also expressed commitment to fostering economic growth, stating, “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.

Nigeria is the second-largest beneficiary of IFC’s financing in Africa with a portfolio of $2.13 billion.