The Nigerian government is in advanced discussions with the World Bank to secure a $500 million loan aimed at boosting access to finance for micro, small, and medium enterprises (MSMEs), according to the Federal Ministry of Industry, Trade and Investment.
The proposed facility is expected to strengthen Nigeria’s business environment by improving credit access and supporting innovation among small businesses, which make up over 80% of the nation’s employment base, according to data from the National Bureau of Statistics (NBS).
Minister of Industry, Trade and Investment Doris Uzoka-Anite said the loan will focus on enhancing financial inclusion through the Development Bank of Nigeria (DBN) and other participating financial institutions. “Our goal is to empower MSMEs to scale, create jobs, and drive sustainable economic growth,” she stated in an interview reported by Bloomberg.
Economic analysts have described the loan as a timely intervention, given Nigeria’s current credit gap for small businesses, which exceeds $32 billion, as highlighted by the World Bank’s Nigeria Country Private Sector Diagnostic Report. The initiative aligns with the government’s broader economic reforms aimed at stabilizing the naira, curbing inflation, and promoting non-oil sector growth.
The World Bank has supported several Nigerian development programs in recent years, including digital entrepreneurship and youth empowerment initiatives. If approved, this new funding will be one of the largest single-sector loans for small business development in Sub-Saharan Africa.
