Loan: World Bank approves fresh $500million for Nigeria

Share

Tweet

Share

Share

Email

Comments

The World Bank has approved a $500 million financing package for Micro, Small, and Medium Enterprises (MSMEs) in Nigeria.

The Bank explained that the operation under the Fostering Inclusive Finance (FINCLUDE) comprises a $400 million International Bank for Reconstruction and Development (IBRD) loan and a $100 million International Development Association (IDA) credit.

The project will be implemented by the Development Bank of Nigeria (DBN), with credit guarantees delivered through DBN’s subsidiary, Impact Credit Guarantee Limited (ICGL).

Nigeria’s micro, small, and medium enterprises (MSMEs) form the backbone of the economy—accounting for most businesses, nearly half of GDP, and a large share of jobs—yet they face longstanding barriers to formal finance.

“Fewer than one in twenty MSMEs have access to bank credit; loans are of- ten short term and costly; and collateral requirements exclude many viable firms.

“Women led enterprises, which make up a substantial portion of MSMEs, are disproportionately affected, facing higher rejection rates and limited tailored products.

“Agribusinesses, central to food security and rural livelihoods, similarly struggle to obtain longer tenor financing for equipment, processing, storage, and logistics”, the statement said partly.

It added that FINCLUDE addresses these constraints by expanding affordable, longer-term finance and tailored solutions to segments with the greatest development impact.

“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,” said Mathew Verghis, World Bank Country Director for Nigeria.

“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.