CBN And IFC Join Forces to Bolster Nigeria’s Private Sector

The Central Bank of Nigeria (CBN) and the International Finance Corporation (IFC), a member of the World Bank Group, have initiated a strategic partnership to enhance private sector growth in Nigeria. This collaboration was announced late Thursday following a visit by the IFC delegation, led by Managing Director Makhtar Diop, to CBN Governor Olayemi Cardoso.

Nigeria, holding the second-largest IFC portfolio in Africa, boasts an active investment portfolio of $2.1bn as of April 2024. The CBN disclosed details of the meeting through its X handle (formerly Twitter), emphasizing the importance of this partnership.

“The leadership of the CBN and IFC held a significant meeting to discuss strategies for supporting Nigeria as part of the IFC’s mandate to bridge the infrastructure gap, build productive industries, and foster inclusive business approaches,” the CBN stated.

The discussion focused on critical areas to support private sector growth, such as expanding access to credit, facilitating trade of receivables for SMEs, and promoting local currency liquidity enhancement solutions between the CBN and the IFC. Both institutions aim to invigorate Nigeria’s banking industry by developing financial products tailored to the country’s needs and catalysing the financial ecosystem.

President Bola Tinubu also emphasized the need for international development financiers to view Africa as a destination for growth and prosperity. He highlighted the continent’s potential for contributing to global peace, stability, and economic development.

“The IFC and the World Bank need to see Africa differently. I am glad an African is at the helm of affairs at IFC, and as an African, understands that the potential for growth, peace, stability, and prosperity is here. The world has to see us as a continent that can help the rest of the world, and not perceive us as backwards, unstable, and with leadership problems,” Tinubu asserted.

The President further called for a change in global perceptions, advocating for Africa to be seen as an opportunity rather than a danger to the rest of the free world. This shift in perspective, he argued, could stimulate growth and promote inclusiveness.

During the visit, the IFC engaged in productive discussions with Nigerian partners to enhance various sectors, including agriculture and transportation. A notable outcome of the visit was a $23.3m loan agreement with Johnvents Industries Limited, aimed at developing Nigeria’s cocoa sector and fostering economic development through agricultural transformation.