The World Bank has approved $500 million to enhance access to credit for Nigeria’s micro, small, and medium enterprises, aiming to address persistent funding gaps that hinder business growth.

According to a Saturday statement, the financing will support the Fostering Inclusive Finance for MSMEs in Nigeria project, structured as a blended facility with $400 million from the International Bank for Reconstruction and Development and $100 million from the International Development Association.

Implementation will be led by the Development Bank of Nigeria, with credit guarantees provided through its subsidiary, Impact Credit Guarantee Limited.

The World Bank notes that MSMEs form the backbone of Nigeria’s economy, contributing nearly half of the country’s GDP and providing a substantial share of employment. Yet, access to formal credit remains severely constrained, with fewer than one in twenty MSMEs able to obtain bank loans. Existing financing is often short-term, costly, and requires collateral, excluding many otherwise viable businesses.
Women-led enterprises face even greater challenges, encountering higher rejection rates and limited access to financial products designed for their needs. Agribusinesses—essential for food security and rural livelihoods—also struggle to secure longer-term financing necessary for equipment, processing, storage, and logistics.

The FINCLUDE project aims to tackle these challenges by increasing access to affordable, longer-term financing, with a focus on women-led enterprises and agribusinesses.
Implemented through the Development Bank of Nigeria, the programme will build the capacity of commercial banks, microfinance banks, and non-bank financial institutions—including fintech companies—to offer larger loans with more flexible repayment terms.
Via Impact Credit Guarantee Limited, the project will expand partial credit guarantees to incentivize lenders to finance MSMEs that are usually deemed high-risk.

The programme will also provide targeted technical assistance to modernize loan appraisal processes through AI-powered digital platforms, enhance data utilization, accelerate credit decisions, and strengthen impact measurement across participating institutions.
Commenting on the approval, World Bank Country Director for Nigeria, Mathew Verghis, said the project is designed to promote job creation, inclusion, and broader economic opportunities nationwide.
He emphasized that by improving access to finance for viable MSMEs—particularly women-led businesses and agribusinesses—Nigeria can accelerate growth and generate tangible benefits for communities across the country.

Verghis was quoted in the statement as saying, “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,” it stated.