World Bank set to approve $500m loan for Nigerian small businesses
The World Bank is expected to approve a $500m loan for Nigeria as part of a project aimed at expanding access to finance for micro, small, and medium enterprises (MSMEs). The loan, under the Fostering Inclusive Finance for MSMEs in Nigeria (FINCLUDE) Project, will help mobilise private capital and support innovative financial products. Bola Tinubu’s government will borrow the funds, with the Development Bank of Nigeria managing the project. Approval is anticipated on December 19, 2025.
TLDR
- The World Bank board is set to approve a $500m loan for Nigeria on December 19, 2025, targeting MSME finance.
- Of the total, $400m comes from the International Bank for Reconstruction and Development and $100m from the International Development Association.
- The Development Bank of Nigeria will implement the FINCLUDE project, aiming to deepen credit access and modernise MSME financing.
- Nigeria’s external debt reached $46.98bn as of June 30, 2025, with the World Bank accounting for 41.3% of this figure.
- Economists warn that while such loans can support development, effective utilisation and prudent fiscal management are crucial for long-term benefits.
