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The World Bank has approved the Fostering Inclusive Finance for MSMEs in Nigeria (FINCLUDE) project, a $500 million financing package for the country. 

The financing package comprises a $400 million International Bank for Reconstruction and Development loan and a $100 million International Development Association credit, to be implemented by the Development Bank of Nigeria (DBN), with credit guarantees provided through DBN’s subsidiary, Impact Credit Guarantee Limited.

“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,” the World Bank said. “Fewer than one in twenty MSMEs have access to bank credit; loans are often 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.”

The Bank also noted that agribusinesses, which are central to food security and rural livelihoods, similarly struggle to obtain longer‑tenor financing for equipment, processing, storage, and logistics, adding that FINCLUDE will address these constraints by expanding affordable, longer‑term finance and tailored solutions to segments with the greatest development impact.