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Dec
WORLD BANK APPROVES $500 MILLION TO BOOST FINANCING FOR NIGERIAN SMALL BUSINESSES
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CapitalTimesNews / 2 months
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WASHINGTON, December 19, 2025 – The World Bank has approved a 500 million dollar financing package for Nigeria aimed at expanding access to finance for micro, small, and medium enterprises. The project, named Fostering Inclusive Finance for MSMEs in Nigeria or FINCLUDE, consists of a 400 million dollar loan from the International Bank for Reconstruction and Development and a 100 million dollar credit from the International Development Association. The project will be implemented by the Development Bank of Nigeria, with credit guarantees delivered through its subsidiary, Impact Credit Guarantee Limited. It seeks to address major barriers to formal finance faced by Nigerian MSMEs, which account for nearly half of the country’s GDP and a large share of jobs. Fewer than one in twenty of these businesses currently have access to bank credit, with loans often being short-term and costly. Women-led enterprises and agribusinesses face particularly acute challenges. Mathew Verghis, World Bank Country Director for Nigeria, stated, “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.” The operation aims to mobilize private investment and expand the availability of inclusive financial products. It will strengthen the capacity of banks, microfinance banks, and non-bank financial institutions like FinTechs to provide larger loans with longer repayment periods. Through partial credit guarantees, it will enable lenders to extend credit to businesses otherwise considered too risky. The project will also introduce an AI-enabled digital platform to modernize loan appraisal and speed up decisions. Hadija Kamayo, Task Team Leader for FINCLUDE, provided specific targets, saying, “FINCLUDE will help to mobilize approximately 1.89 billion dollars in private capital, expand debt financing to 250,000 MSMEs—including at least 150,000 women-led businesses and 100,000 agribusinesses—and issue up to 800 million dollars in guarantees to catalyze lending.” Kamayo added that by extending the average maturity of MSME loans to about three years, the project will help firms invest in equipment, factories, staff, and productivity, translating finance into jobs and growth. A strong emphasis on inclusion and targeted technical assistance is designed to ensure women-led businesses and agribusinesses benefit directly from these financial improvements.