The World Bank has greenlit a $500 million financing package aimed at expanding access to finance for Nigeria’s micro, small, and medium enterprises (MSMEs) under the Fostering Inclusive Finance for MSMEs in Nigeria (FINCLUDE) project.
The package 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), both members of the World Bank Group.
Implementation will be managed by the Development Bank of Nigeria (DBN), with credit guarantees provided via DBN’s subsidiary, Impact Credit Guarantee Limited (ICGL).
MSMEs form the backbone of Nigeria’s economy, comprising the majority of businesses, nearly half of the nation’s GDP, and a significant portion of employment.
Yet, access to formal finance has remained a persistent challenge.
Fewer than five per cent of MSMEs can obtain bank credit, with loans often short-term, costly, and inaccessible due to strict collateral requirements.
Women-led businesses, which account for a substantial share of MSMEs, face heightened barriers, including higher rejection rates and limited financial products tailored to their needs.
Similarly, agribusinesses critical for food security and rural livelihoods—struggle to access long-term financing for equipment, processing, storage, and logistics.
The FINCLUDE project is designed to tackle these barriers by broadening access to affordable, longer-term financing and offering customised solutions for sectors with the greatest development potential.
“FINCLUDE is about jobs, opportunity, and inclusion,” said Mathew Verghis, World Bank Country Director for Nigeria.
“By enabling viable MSMEs—especially women-led firms and agribusinesses—to access finance, Nigeria can accelerate growth and deliver tangible benefits across communities nationwide.
This project supports the people driving the economy, helping small businesses grow and create jobs.”
Through DBN, FINCLUDE will strengthen the capacity of banks, microfinance institutions, and non-bank financial institutions such as FinTechs to provide larger loans with longer repayment periods.
ICGL will issue partial credit guarantees to reduce the perceived risk for lenders, enabling more businesses to access financing.
The project also includes targeted technical support, leveraging AI-enabled digital platforms to modernize loan appraisal processes, improve data quality, and enhance impact measurement.
Both MSMEs and participating financial institutions will benefit from capacity-building programs, ensuring that loans reach intended recipients effectively.
Hadija Kamayo, Task Team Leader for FINCLUDE, highlighted the project’s scale and potential impact,“FINCLUDE is expected to mobilize around $1.89 billion in private capital, extend debt financing to 250,000 MSMEs, including at least 150,000 women-led businesses and 100,000 agribusinesses—and provide up to $800 million in guarantees to catalyde lending.
”By extending loan maturities to approximately three years, firms can invest in equipment, factories, staff, and productivity, turning finance into tangible growth and job creation.”
The World Bank emphasised that inclusive finance would ensure women-led enterprises and agribusinesses, often the most underserved sectors, are primary beneficiaries of this initiative, helping to strengthen Nigeria’s economy from the grassroots upward.
