The World Bank plans to approve a $500 million loan for Nigeria on December 19, 2025. The facility targets expanded finance access for micro, small, and medium enterprises (MSMEs) nationwide.
Okay News reports that the project, titled Fostering Inclusive Finance for MSMEs in Nigeria (FINCLUDE), carries a total estimated cost of $2.39 billion. World Bank funding covers $500 million, with the remainder from private lenders.
Of the bank’s commitment, $400 million comes from the International Bank for Reconstruction and Development (IBRD). The International Development Association (IDA) provides the remaining $100 million.
Nigeria’s Federal Government serves as borrower. The Development Bank of Nigeria (DBN) acts as implementing agency, overseeing fund management.
The project leverages DBN and its subsidiary, Impact Credit Guarantee Limited. Instruments include partial credit guarantees and innovative products tailored to MSME needs.
“The proposed FINCLUDE Project leverages the platforms of the Development Bank of Nigeria and its subsidiary, the Impact Credit Guarantee Limited, to drive inclusive MSME finance,” World Bank documents stated.
Components focus on subordinated capital for financial institutions and an MSME investment fund. They also de-risk private capital mobilisation and provide technical assistance for digitisation.
The initiative addresses uneven credit access, especially for women and agriculture. Agriculture receives just over five percent of bank credit despite its economic role.
World Bank appraisal noted Nigeria’s reforms, including subsidy removals and exchange rate unification. These stabilised inflation to 18 percent by September 2025 and boosted growth prospects.
International Monetary Fund projections estimate 3.9 percent real GDP growth for 2025. Reforms enhanced fiscal space and foreign exchange liquidity.
If approved, the loan adds to Nigeria’s World Bank portfolio. The institution holds $19.39 billion of the country’s $46.98 billion external debt as of June 2025.
Nigeria ranks as the World Bank’s third-largest IDA borrower globally. Exposure reached $18.5 billion by September 2025.
Economists view concessional terms favourably but stress effective utilisation. Proper deployment into revenue-generating projects supports sustainable development.
This financing reinforces multilateral support for Nigeria’s economic transition and MSME growth amid global challenges.
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