The Federal Government of Nigeria has underscored gains in the nation’s financial markets while reaffirming its commitment to expanding credit access for micro, small, and medium enterprises (MSMEs), a move aimed at fuelling business growth, investment, and job creation.
Investors on the Nigerian Exchange Limited (NGX) saw a ₦1.6 trillion increase in market capitalization, raising total capitalization to ₦96.3 trillion in recent trading, a sign of growing confidence in Nigeria’s economic potential. Meanwhile, government and development partners are focusing heavily on improving SME financing as part of broader economic expansion efforts.
A key development driving credit expansion is the World Bank’s approval of a $500 million financing package under the Fostering Inclusive Finance for MSMEs in Nigeria (FINCLUDE) project. This blended facility, comprising a $400 million International Bank for Reconstruction and Development (IBRD) loan and $100 million International Development Association (IDA) credit, is designed to address long‑standing barriers that have limited small business access to formal credit.
Under FINCLUDE, the Development Bank of Nigeria (DBN) will implement the program through its subsidiary, Impact Credit Guarantee Limited (ICGL). The initiative will mobilise private capital and expand affordable, longer‑term financing for MSMEs, including those led by women and operating in critical sectors like agribusiness.
“FINCLUDE is about jobs, opportunity, and inclusion,” said Mathew Verghis, World Bank Country Director for Nigeria. “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 aims to reach roughly 250,000 MSMEs, including at least 150,000 women‑led enterprises and 100,000 agribusinesses, through expanded debt financing and credit guarantee support that reduces risk for lenders.
Government Reforms to Expand Credit Access
Complementing the World Bank program, Nigeria’s National Credit Guarantee Company (NCGC), established to broaden risk‑sharing mechanisms for lenders, has been positioned by the Federal Government as a key pillar in boosting MSME financing. The NCGC supports lenders to extend loans to businesses that might otherwise be considered too risky, helping de‑risk SME credit markets and enhance financial inclusion.
In addition to credit guarantees, government officials have encouraged traditional banks and financial institutions to deepen SME lending practices, emphasising the role of long‑term financing in nurturing small business growth, innovation, and job creation.
Impact for MSMEs
For MSMEs across Nigeria, many of which struggle with costly, short‑term credit and strict collateral requirements, these developments offer enhanced opportunities to access finance that can be used to expand operations, invest in equipment, hire more staff, and enter new markets. Analysts say that improved access to credit is critical for small business resilience, especially in the face of inflationary pressures and market uncertainties.
Experts also point out that combining financing support with technical assistance, digital credit tools, and risk‑sharing frameworks will help strengthen business capacity and sustainability, enabling entrepreneurs to compete effectively in both local and international markets.
As the financial market gains and credit‑access programs continue to unfold, Nigeria’s small business community could see significant improvements in funding availability, business growth prospects, and economic participation, key ingredients for long‑term economic transformation across the continent.
