The World Bank has approved a $500 million financing package aimed at expanding access to finance for micro, small, and medium enterprises (MSMEs) in Nigeria, with a strong emphasis on women-led businesses and agribusinesses.
The approval, announced on December 20, 2025, supports the Fostering Inclusive Finance for MSMEs in Nigeria (FINCLUDE) project.
The package comprises a $400 million loan from the International Bank for Reconstruction and Development (IBRD) and a $100 million credit from the International Development Association (IDA).
Implemented by the Development Bank of Nigeria (DBN) and its subsidiary, Impact Credit Guarantee Limited (ICGL), the initiative is designed to mobilise approximately $1.89 billion in private capital.
It is expected to provide debt financing to around 250,000 MSMEs, including at least 150,000 women-led firms and 100,000 agribusinesses, while issuing up to $800 million in credit guarantees to encourage lending from financial institutions.
MSMEs form the backbone of Nigeria's economy, representing the majority of businesses, contributing nearly half of GDP, and generating a significant portion of employment.
However, they continue to face major hurdles in accessing formal credit, limiting growth and job creation.
World Bank Country Director for Nigeria, Mathew Verghis, described the project as centred on jobs, opportunity, and inclusion.
"Opening access to finance for viable MSMEs, especially women-led firms and agribusinesses, will help Nigeria accelerate growth and deliver tangible benefits across communities," Verghis said.
The project includes provisions for longer-term loans to enable investments in equipment, infrastructure, and workforce expansion.
It also features targeted technical assistance, including AI-enabled digital platforms to streamline loan appraisals, enhance data usage, improve impact measurement, and build capacity for both lenders and borrowers.
This financing builds on Nigeria's recent economic reforms, which have stabilised the macroeconomy and improved prospects for private sector-led growth.
The initiative adds to the country's expanding portfolio of World Bank-supported programmes focused on inclusive development.
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