The World Bank has approved a $500 million financing package to support micro, small, and medium enterprises (MSMEs) in Nigeria. The package, part of the Fostering Inclusive Finance (FINCLUDE) project, comprises a $400 million International Bank for Reconstruction and Development (IBRD) loan and a $100 million International Development Association (IDA) credit.
Nigeria’s MSMEs are a cornerstone of the economy, representing the majority of businesses, nearly half of GDP, and a substantial share of employment. Yet they encounter major obstacles in accessing formal finance: fewer than one in twenty obtain bank credit, loans are often short‑term and costly, and collateral requirements exclude many viable firms. Women‑led enterprises and agribusinesses face especially high rejection rates and limited access to tailored products.
The FINCLUDE project seeks to remove these barriers by expanding affordable, longer‑term financing and customized solutions for the segments with the greatest development impact. Implementation will be handled by the Development Bank of Nigeria (DBN), with credit guarantees provided through DBN’s subsidiary, Impact Credit Guarantee Limited (ICGL). The initiative aims to mobilize private investment and broaden the use of inclusive, innovative financial products for MSMEs nationwide.
Through targeted technical assistance, the project will modernize loan appraisal processes and strengthen the capacity of banks and non‑bank financial institutions to offer larger loans with more reasonable repayment periods. It is expected to mobilize approximately $1.89 billion in private capital, extend debt financing to 250,000 MSMEs, and issue up to $800 million in guarantees to catalyze lending. By lengthening the average maturity of MSME loans to about three years, firms will be able to invest in equipment, factories, staff, and productivity, turning finance into jobs and growth.
World Bank Country Director for Nigeria Mathew Verghis highlighted the project’s significance, emphasizing that it is about jobs, opportunity, and inclusion. He noted that opening up finance for viable MSMEs—particularly women‑led firms and agribusinesses—can accelerate growth and deliver tangible benefits to communities across Nigeria.
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