The World Bank has approved a $500 million financing package aimed at expanding access to affordable and inclusive finance for micro, small, and medium enterprises (MSMEs) across Nigeria, a sector widely regarded as the backbone of the country’s economy.
The approval, announced on Friday, December 20, 2025, covers the Fostering Inclusive Finance (FINCLUDE) project, which 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).
According to the World Bank, the initiative will be implemented by the Development Bank of Nigeria (DBN), with credit guarantees provided through its subsidiary, Impact Credit Guarantee Limited (ICGL).
Although MSMEs account for the majority of businesses in Nigeria, contribute nearly half of the country’s gross domestic product, and employ a significant share of the workforce, the Bank noted that they continue to face deep-rooted challenges in accessing formal finance.
The statement revealed that fewer than one in twenty MSMEs in Nigeria currently have access to bank credit, while available loans are often short-term, expensive, and tied to stringent collateral requirements that exclude many otherwise viable businesses. Women-led enterprises, which form a substantial portion of MSMEs, are said to be disproportionately affected, facing higher rejection rates and limited access to tailored financial products.
Agribusinesses, critical to food security and rural livelihoods, also struggle to secure longer-tenor financing needed for equipment, processing, storage, and logistics.
The World Bank explained that the FINCLUDE project is designed to address these gaps by expanding access to affordable, longer-term financing and by developing tailored solutions for segments with the greatest development impact.
Speaking on the initiative, the World Bank’s Country Director for Nigeria, Mathew Verghis, said the project is focused on jobs, opportunity, and inclusion, noting that opening access to finance for viable MSMEs—particularly women-led businesses and agribusinesses—would help accelerate economic growth and deliver tangible benefits to communities nationwide.
