The World Bank is expected to approve a 500 million dollar loan to Nigeria today to expand access to finance for micro, small, and medium enterprises through the Fostering Inclusive Finance for MSMEs in Nigeria (FINCLUDE) Project.
The initiative aims to mobilise private capital and promote innovative financial products for small businesses via the Development Bank of Nigeria and its subsidiary, Impact Credit Guarantee Limited.
Of the total 500 million dollars, 400 million will come from IBRD and 100 million from IDA, with an additional 1.89 billion expected from commercial lenders. The Federal Government will be the borrower, while DBN will implement the programme.
FINCLUDE focuses on three areas: providing inclusive finance products for MSMEs, de-risking private capital through partial credit guarantees, and offering technical assistance to modernise and digitise Nigeria’s MSME finance ecosystem. Eligible financial institutions will gain access to Tier 2 subordinated capital, while an MSME investment fund will provide equity and long-term debt financing to attract private investment and promote sustainable growth.
Read also,
- NASENI innovation signals new business opportunities
- YMR fuels youth MSMEs nationwide with ₦24m growth grants
- Nigeria positions economy as SME gateway for Europe Africa trade
- Tax reforms committee engages Ombud to protect SMEs
- Cashew sector could unlock $10bn SME opportunity
The World Bank highlighted persistent finance gaps for MSMEs, women entrepreneurs, and the agriculture sector, which received just over 5 per cent of total bank credit in 2024. FINCLUDE seeks to bridge these gaps, supporting small businesses and boosting economic participation.
Economists stress that effective deployment of these funds is key to generating sustainable growth, revenue expansion, and improved public services, making this loan a potential catalyst for Nigeria’s MSME sector.
