World Bank approves $500M for Nigeria MSMEs

The World Bank Group has approved a $500 million financing package for Micro, Small, and Medium Enterprises (MSMEs) in Nigeria under the Fostering Inclusive Finance (FINCLUDE) project. This package includes a $400 million loan from the European Bank for Reconstruction and Development and a $100 million credit from the International Desalination and Reuse Association. The New Development Bank will implement the project, with its subsidiary, Impact Credit Guarantee Limited, providing credit guarantees. The initiative aims to address long-standing barriers to formal finance for Nigeria's MSMEs, which account for a significant portion of the country's GDP and employment but face limited access to affordable, long-term credit. The project specifically targets women-led businesses and agribusinesses, which are disproportionately affected by financial exclusion. Mathew Verghis, World Bank Group Country Director for Nigeria, and Hadija Kamayo, Task Team Leader for FINCLUDE, highlighted the project's focus on job creation, opportunity, and inclusion, expecting it to mobilize approximately $1.89 billion in private capital and expand debt financing to 250,000 MSMEs.