Nigeria and the IFC establish a financial agreement to increase financing for naira currency

The International Finance Corp and the central bank of Nigeria have inked a deal to reduce foreign exchange risks and increase local currency funding for Nigerian companies, the agencies announced in a statement on Monday.

According to the statement, the World Bank Group member IFC wants to “significantly scale up” its funding in Nigeria, with a goal of over $1 billion over the next several years.

Through the agreement, IFC will be able to boost its investments in Nigerian naira currency and manage currency risks in a variety of sectors, including small and medium-sized businesses, housing, energy, infrastructure, agriculture, and the creative industry.

“Many of these sectors require local currency financing, and IFC’s partnership with the (central bank) is a key tool in expanding access,” the statement continued.