The World Bank Group is expected to approve a $500m loan for Nigeria today (Friday) as part of efforts to expand access to finance for micro, small and medium enterprises across the country.
According to information obtained from the World Bank, the facility is aimed at supporting inclusive financing and mobilising private capital for MSMEs through structured financial instruments.
The loan, which will be implemented under the Fostering Inclusive Finance for MSMEs in Nigeria (FINCLUDE) Project, comprises $400m from the International Bank for Reconstruction and Development and $100m from the International Development Association.
Nigeria will be the borrower, while the Development Bank of Nigeria will serve as the implementing agency. The total project cost is estimated at about $2.39bn, with additional funding expected from private sector participants without sovereign guarantees.
The project is designed to strengthen access to long-term financing for MSMEs by supporting eligible financial institutions with innovative products, de-risking mechanisms and partial credit guarantees.
World Bank documents indicate that the programme will also deploy technical assistance to modernise Nigeria’s MSME finance ecosystem and improve the capacity of financial institutions to lend to smaller businesses.
The initiative is expected to leverage the DBN and its subsidiary, Impact Credit Guarantee Limited, to crowd in private capital and reduce lending risks, particularly for enterprises owned by women and firms operating outside major commercial centres.
If approved, the facility will add to a growing list of multilateral financing arrangements targeted at supporting Nigeria’s economic resilience, job creation and private sector-led growth.
World Bank Set to Approve $500m Loan to Support Nigeria’s Economic Growth
