WASHINGTON – The World Bank has approved a $500 million financing package to support Nigeria’s micro, small, and medium enterprises (MSMEs). The Fostering Inclusive Finance for MSMEs in Nigeria (FINCLUDE) project will be implemented by the Development Bank of Nigeria (DBN) and aims to expand affordable, longer-term finance 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 help mobilize private investment and expand access to and usage of inclusive, innovative financial products for MSMEs nationwide. It will strengthen the capacity of banks, including microfinance banks and non-bank financial institutions, to provide larger loans with more reasonable repayment periods.
FINCLUDE will help mobilize approximately $1.89 billion 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 in guarantees to catalyze lending.
“The project will make it easier for deserving small businesses to get the finance they need to grow and hire workers,” Verghis added.
Hadija Kamayo, Task Team Leader for FINCLUDE, said the project will extend the average maturity of MSME loans to about three years, helping firms invest in equipment, factories, staff, and productivity, translating finance into jobs and growth.
The World Bank’s financing package comprises a $400 million International Bank for Reconstruction and Development (IBRD) loan and a $100 million International Development Association (IDA) credit.
