Nigeria Inks New Agreement with World Bank Group to Strengthen Naira and Attract Investments
By Okafor Joseph Afam
October 28, 2024
The Central Bank of Nigeria (CBN) has entered into a strategic agreement with the International Finance Corporation (IFC), a member of the World Bank Group, aimed at bolstering the naira and stimulating increased investment in Nigeria. The partnership is expected to support local currency financing for Nigerian businesses and mitigate foreign exchange risks that impact various sectors of the economy.
The joint statement from the CBN and IFC highlighted the importance of the partnership in providing financial stability for sectors in need of local currency. “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 read.
Through this agreement, the IFC has committed to over $1 billion in financing to “significantly scale up” its investment footprint in Nigeria. The collaboration will enable the IFC to manage currency risks effectively and expand its investments in naira across several key sectors, including agriculture, housing, infrastructure, energy, small and medium-sized enterprises, and the creative industry.
This move is seen as a critical step in addressing Nigeria’s currency challenges and reinforcing its economy by supporting sustainable local financing for businesses across diverse sectors.
