The World Bank has approved a $500 million financing package to expand access to finance for micro, small, and medium enterprises (MSMEs) in Nigeria under the Fostering Inclusive Finance for MSMEs in Nigeria (FINCLUDE) project.
In a press release issued on Saturday, the global lender said the approval includes a $400 million loan from the International Bank for Reconstruction and Development (IBRD) and a $100 million credit from the International Development Association (IDA) to the Federal Republic of Nigeria. The project will be implemented by the Development Bank of Nigeria (DBN), with credit guarantees delivered through its subsidiary, Impact Credit Guarantee Limited.
According to the World Bank, Nigeria’s MSMEs account for most businesses in the country, contribute nearly half of gross domestic product, and provide a large share of jobs, but fewer than one in twenty have access to bank credit. Available loans are often short-term, expensive, and dependent on collateral requirements that exclude many viable firms.
Women-led enterprises and agribusinesses are particularly affected. Women-led businesses face higher rejection rates and limited access to tailored financial products, while agribusinesses struggle to secure longer-term financing for equipment, processing, storage, and logistics.
FINCLUDE is designed to address these challenges by expanding affordable, longer-term finance and tailored solutions for segments with the greatest development impact, especially women-led businesses and agribusinesses.
Commenting on the approval, World Bank Country Director for Nigeria, Mathew Verghis, said the project focuses on jobs, opportunity, and inclusion. He explained that opening access to finance for viable MSMEs would help Nigeria accelerate growth and deliver tangible benefits across communities.
“FINCLUDE is about jobs, opportunity, and inclusion. By opening finance for viable MSMEs—particularly women-led firms and agribusinesses—Nigeria can accelerate growth and deliver tangible benefits in communities nationwide. With better support for lenders that practise inclusive finance and fairer, longer-term loans for entrepreneurs, we are backing the people who power Nigeria’s economy,” Verghis said.
The project will mobilise private investment, expand access to inclusive and innovative financial products, and strengthen the capacity of banks, including microfinance banks and fintechs, to provide larger loans with more reasonable repayment periods. Through Impact Credit Guarantee Limited, partial credit guarantees will allow lenders to extend credit to businesses they might otherwise consider too risky.
Targeted technical assistance will modernise loan appraisal using AI-enabled digital platforms, speed up credit decisions, improve data usage, strengthen impact measurement, and build capacity for both MSMEs and participating financial institutions. Women-led businesses and agribusinesses are expected to benefit substantially.
Task Team Leader for FINCLUDE, Hadija Kamayo, said the project aims to mobilise about $1.89 billion in private capital and expand debt financing to 250,000 MSMEs, including at least 150,000 women-led businesses and 100,000 agribusinesses. The initiative will issue up to $800 million in guarantees to catalyse lending and extend the average maturity of MSME loans to about three years, enabling firms to invest in equipment, factories, staff, and productivity.
“FINCLUDE will help firms translate financing into jobs and growth by providing longer-term loans and targeted support,” Kamayo said.
The approved package adds to Nigeria’s growing portfolio of World Bank-supported programmes. As of June 30, 2025, Nigeria’s external debt stood at $46.98 billion, with the World Bank Group as the largest single creditor, holding $19.39 billion—$18.04 billion from IDA and $1.35 billion from IBRD—representing 41.3 per cent of the country’s external debt.
