The World Bank is expected to approve a $500m loan to Nigeria on Friday as part of efforts to expand access to finance for micro, small and medium enterprises (MSMEs) across the country.
The proposed funding is tied to the Fostering Inclusive Finance for MSMEs in Nigeria (FINCLUDE) Project, which is designed to mobilise private capital and promote innovative financial products for small businesses, according to information obtained from the World Bank.
Negotiations on the facility are currently ongoing, with approval by the World Bank Group’s board anticipated on Friday, December 19, 2025.
Under the proposed arrangement, the World Bank will commit $500m out of an estimated total project cost of $2.39bn. Of this amount, $400m will be provided by the International Bank for Reconstruction and Development (IBRD), while $100m will come from the International Development Association (IDA).
The Federal Government of Nigeria will be the borrower, while the Development Bank of Nigeria (DBN) will serve as the implementing agency, with overall responsibility for managing and disbursing the funds.
The remaining $1.89bn required to fully finance the FINCLUDE project is expected to be raised from commercial lenders as unguaranteed private-sector financing.
The initiative is expected to strengthen financial inclusion, improve access to credit for small businesses, and support economic growth by enabling MSMEs to scale operations and create jobs.
