The Nigerian government is pursuing a $500 million loan from the World Bank to boost access to finance for micro, small, and medium enterprises (MSMEs), in a move aimed at deepening financial inclusion and supporting economic growth.
According to documents obtained from the World Bank, the initiative — titled the FINCLUDE Project — will be implemented through the Development Bank of Nigeria (DBN) and its subsidiary, Impact Credit Guarantee Limited.
The project is designed to provide innovative and inclusive financial instruments that address the diverse needs of MSMEs across the country.
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The World Bank is expected to contribute $500 million to the program’s total estimated cost of $2.39 billion, while the International Bank for Reconstruction and Development (IBRD) will provide $400 million, and the International Development Association (IDA) will add $100 million.
The IBRD and IDA, both part of the World Bank Group, offer financial support to developing nations — the former through near-market loans for middle-income countries, and the latter through concessional financing and grants for low-income economies.
“DBN is a long-standing partner of the World Bank with a proven track record in implementing complex and innovative projects,” the global lender noted, emphasizing the institution’s capacity to deliver on large-scale development initiatives.
The FINCLUDE Project is structured around three key components: creating inclusive MSME financial products, mobilizing private capital through partial credit guarantees, and modernizing the MSME financing ecosystem with digital tools and technical support. The project is slated for approval on December 18, 2025.
The World Bank highlighted that Nigeria’s recent economic reforms have improved fiscal stability, enhanced foreign exchange liquidity, and reduced inflation to 18 percent as of September 2025.
These gains, combined with projected GDP growth of 3.9 percent in 2025 by the IMF, underscore the country’s improving economic outlook.
Through this partnership, Nigeria aims to strengthen its credit infrastructure, empower small businesses, and accelerate financial inclusion — positioning the MSME sector as a key driver of sustainable economic development.
