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The World Bank has approved a $500 million financing package to expand financial access for micro, small, and medium enterprises(MSMEs) in Nigeria.
According to Punch News, the statement was issued by the World Bank in Nigeria on Saturday.
“The World Bank today approved the Fostering Inclusive Finance for MSMEs in Nigeria project, a $500m financing package to the Federal Republic of Nigeria.
“The operation comprises a $400m International Bank for Reconstruction and Development loan and a $100m International Development Association credit and will be implemented by the Development Bank of Nigeria, with credit guarantees delivered through DBN’s subsidiary, Impact Credit Guarantee Limited,” the statement read.
The statement noted that the project, known as FINCLUDE, aims to tackle limited access to loans by providing affordable, longer-term financing and tailored solutions for segments with the greatest development impact, particularly women-led businesses and agribusinesses.
Mathew Verghis, the World Bank’s Nigeria Country Director, also stated that the $500 million MSME finance package focuses on jobs, opportunity, and inclusion.
He explained that the project will help deserving small businesses access the financing needed to expand and hire workers, while supporting lenders who practise inclusive finance and offer fair, longer-term loans to strengthen Nigeria’s economy.
The World Bank noted that, through the Development Bank of Nigeria, the initiative will boost the capacity of banks, including microfinance institutions and fintech firms, to provide larger loans with more reasonable repayment terms.
The Task Team Leader for FINCLUDE, Hadija Kamayo, also said the project is expected to mobilise about $1.89bn in private capital and expand debt financing to 250,000 MSMEs, including at least 150,000 women-led businesses and 100,000 agribusinesses.
Kamayo added that the initiative would issue up to $800m 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, and translate financing into jobs and growth.
The approved loan adds to Nigeria’s growing portfolio of World Bank-supported programmes.
According to the Debt Management Office, the country’s external debt stood at $46.98 billion as of June 30, 2025.
The World Bank Group remains Nigeria’s largest single creditor, accounting for $19.39bn of the total, comprising $18.04bn from the International Development Association (IDA) and $1.35bn from the International Bank for Reconstruction and Development (IBRD).
This represents 41.3 per cent of the country’s external debt, reinforcing the bank’s dominant role in financing Nigeria’s development initiatives.
