Fostering Inclusive Finance for MSMEs in Nigeria (FINCLUDE)

Fostering Inclusive Finance for MSMEs in Nigeria (FINCLUDE) is sponsored by World Bank. A project aimed at expanding affordable, longer-term finance and tailored solutions to micro, small, and medium enterprises in Nigeria, with a focus on women-led firms and agribusinesses.

World Bank Approves $500 million to Expand Finance for Small Businesses in Nigeria PRESS RELEASE December 19, 2025 World Bank Approves $500 million to Expand Finance for Small Businesses in Nigeria WASHINGTON, December 19, 2025 – The World Bank today approved the Fostering Inclusive Finance for MSMEs in Nigeria (FINCLUDE) project, a $500 million financing package to the Federal Republic of Nigeria.

The operation comprises a $400 million International Bank for Reconstruction and Development (IBRD) loan and a $100 million International Development Association (IDA) credit and 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 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. Agribusinesses, central to food security and rural livelihoods, similarly struggle to obtain longer‑tenor financing for equipment, processing, storage, and logistics.

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 women and those in agriculture. ” The project will help to mobilize private investment and expand access to and usage of inclusive, innovative financial products for MSMEs nationwide.

Through DBN, the operation will strengthen the capacity of banks, including microfinance banks and non-bank financial institutions such as Financial Technologies (FinTech’s), to provide larger loans with more reasonable repayment periods, and—through ICGL—will scale partial credit guarantees so that lenders can extend credit to businesses they might otherwise consider too risky.

Targeted technical assistance will modernize loan appraisal with AI-enabled digital platform to speed decisions and use better data, strengthen impact measurement, and build capacity for both MSMEs and participating financial institutions. A strong emphasis on inclusion will ensure women‑led businesses and agribusinesses benefit from these improvements . “FINCLUDE will help to 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.

By extending the average maturity of MSME loans to about three years, it will help firms invest in equipment, factories, staff, and productivity, translating finance into jobs and growth” said Hadija Kamayo, Task Team Leader for FINCLUDE. PRESS RELEASE NO: 2026/043/AFW mlaushi@worldbankgroup. org The World Bank in Nigeria The World Bank in Western and Central Africa