New FINCLUDE programme targets women-led businesses, agribusinesses, and long-standing credit gaps
The World Bank has approved $500 million in new financing to improve access to credit for micro, small and medium enterprises (MSMEs) in Nigeria, addressing persistent funding challenges that continue to limit business expansion and job creation.
In a statement issued on Saturday, the global lender said the funding is for the Fostering Inclusive Finance for MSMEs in Nigeria (FINCLUDE) project. The facility is structured as a blended package, comprising $400 million from the International Bank for Reconstruction and Development (IBRD) and $100 million from the International Development Association (IDA).
The project will be implemented by the Development Bank of Nigeria (DBN), while credit guarantees will be provided through its subsidiary, Impact Credit Guarantee Limited (ICGL).
According to the World Bank, MSMEs form the backbone of Nigeria’s economy, accounting for nearly half of the country’s gross domestic product and employing a significant portion of the workforce. Despite their economic importance, access to formal financing remains extremely limited, with fewer than one in twenty MSMEs able to obtain bank credit.
Where financing is available, it is often short-term, expensive, and tied to strict collateral requirements that exclude many otherwise viable businesses.
The World Bank noted that women-led enterprises face even greater barriers, recording higher loan rejection rates and limited access to financial products tailored to their needs. Agribusinesses critical to food security, rural employment, and value-chain development also struggle to secure longer-term financing for equipment, processing, storage, and logistics.
Focus on inclusion and longer-term funding
The FINCLUDE project is designed to tackle these constraints by expanding access to affordable, longer-tenor loans, with particular emphasis on women-owned businesses and agribusiness operators.
Through the Development Bank of Nigeria, the programme will strengthen the capacity of commercial banks, microfinance institutions, non-bank lenders, and fintech firms to provide larger loans with more flexible repayment structures.
Impact Credit Guarantee Limited will scale up partial credit guarantees, encouraging financial institutions to lend to MSMEs typically viewed as high-risk borrowers.
In addition, the project will deploy targeted technical assistance to modernise loan appraisal processes using AI-enabled digital platforms, improve data utilisation, accelerate credit decisions, and strengthen impact measurement across participating financial institutions.
Commenting on the approval, the World Bank Country Director for Nigeria, Mathew Verghis, said the initiative is aimed at expanding economic opportunity, boosting job creation, and promoting financial inclusion.
He said easing access to finance for viable MSMEs especially women-led firms and agribusinesses would help accelerate growth and deliver measurable benefits across communities.
“FINCLUDE is about jobs, opportunity, and inclusion,” Verghis said. “By opening finance for viable MSMEs, particularly women-led firms and agribusinesses, Nigeria can accelerate growth and deliver tangible benefits in communities nationwide.
“The project will make it easier for deserving small businesses to access the finance they need to grow and hire workers. By supporting lenders that practice inclusive finance and offering fairer, longer-term loans, we are backing the people who power Nigeria’s economy, especially women and those in agriculture.”
Mobilising private investment
Beyond direct lending, the World Bank said the FINCLUDE programme is expected to mobilise about $1.89 billion in private capital and expand debt financing to approximately 250,000 MSMEs across the country.
Of this number, at least 150,000 are expected to be women-led businesses, while 100,000 will be agribusinesses. The programme also plans to issue up to $800 million in credit guarantees to stimulate additional lending from financial institutions.
According to Hadija Kamayo, Task Team Leader for FINCLUDE, the project is structured to ensure that improved access to finance translates into higher productivity, increased investment, and sustainable job creation.
She said extending the average maturity of MSME loans to around three years would enable businesses to invest in equipment, infrastructure, and workforce expansion, supporting long-term growth and employment.
About the Author
