IFC’s Diop stresses private sector growth in Nigeria visit

The International Finance Corporation (IFC) Managing Director, Makhtar Diop, is on a three-day visit to Nigeria, the IFC's second largest portfolio in Africa. With a current portfolio exceeding $12 billion in Africa and a total investment of $60 billion in African businesses and financial institutions, the IFC is strategically focusing on advancing development in the private sector in Nigeria. Diop emphasizes that Nigeria, as the largest economy in the continent, has a vibrant private sector with some of the greatest businessmen in the world, making it an essential destination for IFC's investments. One of the key objectives during this visit is to support the government's direction and objectives, particularly in the agricultural sector. Diop highlights the importance of increasing food production, especially after a period of global food crisis, by financing fertilizers and transforming commodities and raw materials. Notably, a recent project signed by Diop involves transforming cocoa beans into cocoa powder for export, showcasing the economic benefits of value addition. Diop underscores the significance of feedback received from Nigerian entrepreneurs, particularly the need for more local currency financing and equity to address exchange rate fluctuations and access to long-term debt. In response to these needs, the IFC is working on enhancing local currency financing capabilities and increasing equity investments to support the private sector. Diop's engagements with the government in Abuja focus on discussing challenges such as infrastructure and logistics, diversifying the economy, and investing in regions that require more economic activities, like the northern part of Nigeria. Furthermore, Diop emphasizes the importance of creating a supply chain to generate jobs and increase value addition within Nigeria. He outlines the vision to deepen the country's agriculture sector through investments, public-private partnerships, and market accessibility. Additionally, the IFC is actively working on sustainability initiatives, including expanding green buildings and addressing climate change through smart agriculture and urban development strategies. Looking ahead, the IFC aims to increase its commitment in Nigeria significantly over the next few years, driven by the country's vast potential and the energy and focus displayed by local business leaders. Diop's approach involves not only providing financial support but also actively listening to understand how the IFC can better support the African private sector's growth and development.