The World Bank and the Bank of Industry have announced a $500 million development finance initiative aimed at expanding access to credit for micro, small, and medium enterprises, unlocking private capital, and accelerating job creation across Nigeria.
The initiative, unveiled at the second edition of the Bank of Industry Development Lecture Series in Abuja, is part of a broader effort to reform Nigeria’s development finance system and close the country’s estimated $120 billion MSME funding gap.
World Bank Country Director for Nigeria, Matthew Verghis, said the project reflects a strategic shift toward modernising Nigeria’s financial architecture in line with global standards and national growth priorities. He noted that recent fiscal and monetary reforms are beginning to yield macroeconomic gains, citing stabilising inflation, improving foreign reserves, and Nigeria’s recent removal from the Financial Action Task Force grey list as indicators of progress.
According to Verghis, Nigeria’s removal from the FATF grey list is a significant milestone that boosts investor confidence and strengthens the country’s financial reputation. However, he cautioned that despite these improvements, many Nigerians continue to face poverty and weak purchasing power. He stressed the need for sustained reforms that prioritise job creation, enterprise growth, and inclusive access to finance.
Verghis outlined that the new World Bank–BOI partnership will focus on leveraging private capital and digital innovation to strengthen enterprise financing. The programme’s flagship component, the Fostering Inclusive Finance for MSMEs (FIRM) Project, is designed to attract at least four times its value in private sector investments. Through instruments such as subordinated debt, MSME investment funds, and partial credit guarantees, the project aims to narrow Nigeria’s vast MSME financing gap.
He also pointed to digital tools and risk-sharing mechanisms such as InfraCredit and the proposed Nigeria Infrastructure Finance and Guarantees Platform as key to improving credit access and creating a stronger pipeline of bankable projects.
BOI Chairman, Mansur Muhtar, reaffirmed the bank’s commitment to driving inclusive and sustainable growth through industrial development and enterprise support. He said the partnership aligns with the BOI’s mission to deepen sectoral linkages, expand opportunities for small businesses, and accelerate Nigeria’s industrial transformation.
“At the Bank of Industry, we believe that inclusive, investment-led growth is not just a goal but a necessity,” Muhtar said. “Our focus is to support businesses through innovative and responsible lending while harnessing technology to unlock new opportunities across key sectors.”
The $500 million programme marks a renewed push to strengthen Nigeria’s MSME ecosystem by building a more resilient and inclusive financial framework that empowers small businesses and fuels sustainable economic growth.
