IFC to inject $30bn annually to strengthen MSMEs
The International Finance Corporation (IFC) has proposed to inject between $25 billion and $30 billion annually in financing aimed at bridging the credit gap for micro, small, and medium enterprises (MSMEs). The IFC’s annual financing will be facilitated through CycleFlow—a nationwide working capital platform powered by C2FO—launched yesterday. Speaking at the launch, the IFC Regional […]
Micro, Small and Medium Enterprises (MSMEs)
The International Finance Corporation (IFC) has proposed to inject between $25 billion and $30 billion annually in financing aimed at bridging the credit gap for micro, small, and medium enterprises (MSMEs).
The IFC’s annual financing will be facilitated through CycleFlow—a nationwide working capital platform powered by C2FO—launched yesterday.
Speaking at the launch, the IFC Regional Director for Central Africa and Nigeria, Dahlia Khalifa, expressed the organisation’s commitment to creating an enabling environment for SMEs to thrive.
She noted that about $25 billion in working capital is currently locked in payment cycles between large enterprises and their smaller suppliers.
“Suppliers often wait 90 days or more to be paid for goods and services already delivered. That is capital that cannot be reinvested, jobs that cannot be created—or even maintained in some cases—and productivity that is lost. Growth cannot happen under such conditions in Nigeria,” she said.
She described CycleFlow as a national supply chain finance platform designed to provide a digital, data-driven solution that connects corporations with their MSME suppliers and financial institutions.
“The model is simple but transformative. Suppliers can sell pre-approved invoices at a discount and receive early payments without collateral, without complex loan applications, and without waiting months.
“That is the simplicity and the magic that the C2FO technology has unlocked,” she added.
Khalifa stressed that the platform would ensure immediate liquidity for businesses to restock, hire and grow.
“IFC’s mission is to create markets that work for everyone, especially those often left behind. Nigeria’s National Supply Chain Finance Platform aligns with that mission,” she said.
The Chairman of CycleFlow Limited, Segun Ogunsanya, noted that several companies have already been onboarded, adding that the platform would support SME growth.
“This platform directly addresses this gap. Rather than relying on the credit profile of SMEs, it leverages the stronger credit profile of buyers—typically large multinationals or established local enterprises—to unlock financing for suppliers.
“This means that an MSME with an invoice approved for payment by a large buyer can access immediate cash without collateral, delays, or fragmented lending,” he said.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, represented by the Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, emphasised the need to support SMEs, noting that they contribute about 50 percent of the country’s GDP.
“They employ the overwhelming majority of our working-age population. They are the primary vehicles through which our people translate ambition, ingenuity, and hard work into economic advancement. They are the human face of the Nigerian economy,” he said.
He commended IFC’s engagement in the country’s financial landscape, adding that the Federal Government is committed to translating potential into performance.
“We regard this partnership as emblematic of the kind of public-private, multilateral collaboration that will define Nigeria’s investment story in the years ahead,” he said.