The World Bank has approved $500 million in financing to expand access to credit for micro, small and medium enterprises (MSMEs) in Nigeria, aiming to close long-standing funding gaps that have slowed business growth across the country.
In a statement released on Saturday, the global financial institution said the approval covers the Fostering Inclusive Finance for MSMEs in Nigeria (FINCLUDE) project. The package is structured as a blended facility, with $400 million coming from the International Bank for Reconstruction and Development (IBRD) and $100 million from the International Development Association (IDA).
According to the World Bank, the project will be implemented by the Development Bank of Nigeria (DBN), while credit guarantees will be delivered through its subsidiary, Impact Credit Guarantee Limited. The initiative targets Nigeria’s MSME sector, which dominates the country’s business landscape and contributes nearly half of the national gross domestic product. MSMEs also play a major role in employment generation, but access to formal credit remains limited. The Bank noted that fewer than one in twenty MSMEs are able to secure bank loans, while the few available loans are often short-term, expensive and demand collateral that most small businesses cannot meet.
The World Bank also pointed out that women-led enterprises are disproportionately affected by financing challenges. These businesses face higher rejection rates and have fewer financial products designed to meet their needs. Similarly, agribusinesses, which are vital for food security and rural livelihoods, struggle to access long-term funding required for machinery, processing, storage and logistics.
The FINCLUDE project is designed to address these challenges by expanding access to affordable and longer-term financing, with a special focus on women-led enterprises and agribusinesses. Through the Development Bank of Nigeria, the programme will strengthen the capacity of commercial banks, microfinance banks and non-bank financial institutions, including fintech firms, to provide larger loans with flexible repayment terms.
Through Impact Credit Guarantee Limited, the project will scale up partial credit guarantees to encourage lenders to finance MSMEs that might otherwise be considered high-risk. The World Bank added that FINCLUDE will include technical assistance to modernise loan appraisal systems through AI-enabled digital platforms, enhance data use, speed up credit decisions and improve impact measurement among participating institutions.
Speaking on the approval, the World Bank Country Director for Nigeria, Mathew Verghis, said the project will boost job creation, economic inclusion and opportunities across the country. Verghis said, “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. The project will make it easier for deserving small businesses to get the finance they need to grow and hire workers. With better support for lenders that practice inclusive finance and fairer, longer-term loans for entrepreneurs, we are backing the people who power Nigeria’s economy especially women and those in agriculture.”
Beyond direct lending, the World Bank stated that FINCLUDE is expected to mobilise about $1.89 billion in private capital and expand debt financing to around 250,000 MSMEs nationwide. Out of this number, about 150,000 are projected to be women-led businesses, while 100,000 will be agribusinesses.
The programme also plans to issue up to $800 million in credit guarantees to stimulate additional lending from financial institutions.
According to Hadija Kamayo, Task Team Leader for FINCLUDE, the project is structured to turn increased access to finance into tangible productivity gains, investments and job creation. She explained that by extending the average maturity of MSME loans to around three years, businesses would have the financial space to invest in new equipment, facilities and workforce expansion, ultimately driving growth and employment across Nigeria.
where’s the link for application? and how can someone apply?
I need sure ngo job