Nigeria is moving to secure a $500 million loan from the World Bank to strengthen financing support for micro, small, and medium enterprises.
According to a project document obtained from the World Bank, the loan will primarily expand credit access through the Development Bank of Nigeria (DBN) and its subsidiary, Impact Credit Guarantee Limited, Business Insider Africa reported.
“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,” the World Bank stated.
The institution added that “through these catalytic institutions, the project will deploy a package of complementary, inclusive, and innovative instruments tailored to the diverse needs of MSMEs in Nigeria.”
The World Bank will contribute $500 million to the program’s estimated total cost of $2.39 billion.
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The International Bank for Reconstruction and Development (IBRD) is also expected to add $400 million, while the International Development Association (IDA) will provide $100 million.
These divisions, IBRD and IDA, form the two main lending arms of the World Bank Group.
As reported by Punch, the IDA focuses on providing concessional loans and grants to the world’s poorest countries, using donor-funded resources rather than commercial borrowing, while the IBRD lends at near-market rates to middle-income and credit-worthy low-income countries.
“DBN is a partner well known to the World Bank with high implementation capacity and a proven track record in designing and executing complex, innovative projects,” the global lender noted.
The project includes three major components: innovative and inclusive MSME finance products, de-risking and private capital mobilization through partial credit guarantees, and technical support aimed at modernizing and digitizing the MSME finance ecosystem. Approval is expected on December 18, 2025.
“These reforms have improved fiscal space, enhanced FX liquidity, and eased inflation to 18 per cent as of September 2025. Growth prospects are strengthening, with the IMF projecting 3.9 per cent real GDP growth in 2025,” the World Bank added.
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Image Credit: Prime Time News
