• Central Bank of Nigeria and International Finance Corporation (IFC) enter into foreign exchange financing agreement
• The new agreement will see the IFC investing in foreign exchange financing to boost businesses in agriculture and other sectors.
• The billion-dollar deal will boost the naira and help catalyze the Nigerian economy while promoting local businesses.

Legit.ng’s Pascal Oparada reported on technology, energy, stocks, investing and economy for over a decade.

The International Finance Corporation (IFC), owned by the World Bank Group, and the Central Bank of Nigeria (CBN) have agreed to increase local currency financing to enable private businesses in Nigeria to thrive.

The agreement will allow the IFC to manage currency risks and increase its Nigerian naira investments in critical economic sectors, including agriculture, housing, infrastructure, energy, small and medium enterprises (SMEs), and the creative and youth economy.

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Priority agriculture and SMEs

The company aims to increase funding for critical sectors by Nigeriaproviding over a billion dollars in the coming years.

Reuters reports that many sectors require local currency financing, and IFC’s partnership with the apex bank is a critical tool to expand access.

CBN Governor Olayemi Cardoso said the pioneering initiative between the parties will unlock much-needed long-term local currency financing for private businesses.

He said the partnership marks a key advancement in the bank’s commitment to implementing innovative development initiatives through reputable third-party service providers, going beyond traditional intervention programs.

The new agreement will catalyze the economy

He added that the move would catalyze the economy and advance the Nigerian government’s agenda on economic diversification.

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IFC has an active investment portfolio in Nigeria worth $2.13 billion, the second highest on the continent. The new deal is a key for the company.

A big boost for the naira

IFC said it will continue to leverage innovative financial instruments and strengthen partnerships to meet the growing demand for local currency financing in emerging markets.

Experts believe the new deal will boost Nairawhich fell on the foreign exchange market.

A recent report by Legit.ng revealed that the naira May end of 2024 as the worst performing currency in the world after collapsing to 1,740 Naira in the parallel market.

Naira as dollar inflow hits $57 billion monthly

Legit.ng earlier reported that the Central Bank of Nigeria (CBN) revealed that foreign exchange inflows into Nigeria reached $57 billion in August 2024.

Muhammad Abdullahi, Deputy Director of Economic Policy, CBN, briefed the audience on the foreign exchange situation in Nigeria in Washington, DC.

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Abdullahi said capital imports almost doubled to $6.9 billion in August this year, compared to $3.9 billion recorded in the 2023 financial year.

Source: Legit.ng