Major Boost for Nigerian Small Businesses as FG Secures $500 Million World Bank Facility
The Federal Government of Nigeria has taken a significant step toward strengthening the country's small business sector by securing a $500 million (approximately N750 billion) loan from the World Bank. This substantial facility is specifically designated to support micro, small, and medium enterprises (MSMEs) across Nigeria through the Development Bank of Nigeria (DBN).
FINCLUDE Project: A New Era of Inclusive Financing
Dubbed the "FINCLUDE Project," this initiative will be managed through the Development Bank of Nigeria and its subsidiary, Impact Credit Guarantee Limited (ICGL). According to World Bank project documents, the program is designed to deliver inclusive, innovative, and catalytic instruments to help MSMEs access credit, scale operations, and enhance competitiveness.
The World Bank stated: "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 total project cost is estimated at $2.39 billion, with the World Bank providing $500 million, while its lending arms—the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA)—will contribute $400 million and $100 million respectively.
Why DBN Was Chosen and Women's Economic Empowerment
The World Bank cited DBN's strong implementation capacity and proven track record as key factors in selecting it as the primary disbursement channel. "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 Bank noted.
Since its establishment in 2015, DBN has disbursed over ₦1 trillion to MSMEs nationwide, with an impressive 62% of interventions supporting women-owned enterprises. This commitment to gender inclusion was recently demonstrated at an empowerment event in Yola, Adamawa State, where DBN Managing Director Tony Okpanachi emphasized: "This initiative is not just about access to credit. It's about equipping Nigerian women with the knowledge and tools they need to succeed and contribute meaningfully to the economy."
Economic Context and Debt Concerns
The World Bank report indicates Nigeria's macroeconomic outlook is gradually improving, with inflation moderating to 18% as of September 2025, and GDP growth projected at 3.9% in 2025. The reforms implemented by the Tinubu administration have reportedly improved fiscal space, enhanced FX liquidity, and boosted investor confidence.
However, financial analysts have raised concerns about Nigeria's rising debt profile, which reached ₦152.4 trillion as of June 2025, according to the Debt Management Office. Financial analyst Osas Igho cautioned: "There's nothing wrong with borrowing, but Nigeria's debt profile is huge compared to its revenue. Instead of more loans, the government and regulators like the Central Bank of Nigeria and Securities and Exchange Commission should pressure banks to increase MSME lending."
The FINCLUDE Project is expected to receive final approval by December 18, 2025. For millions of Nigerian small business owners, this $500 million facility could signal expansion opportunities, job creation, and economic growth, though questions remain about its impact on the nation's overall debt burden.
