The World Bank has approved a $500 million loan to support Nigeria’s efforts to improve access to finance for micro, small and medium enterprises (MSMEs), a sector widely regarded as the backbone of the country’s economy.
The funding is expected to strengthen financial institutions, expand credit availability for small businesses, and support reforms aimed at improving the business environment. MSMEs account for a significant share of employment in Nigeria, but many continue to struggle with limited access to affordable financing.
According to officials, the loan will focus on reducing barriers that prevent small businesses from accessing loans, including high interest rates, weak credit infrastructure, and limited financial inclusion. The initiative is also expected to support women-led enterprises and underserved businesses across different regions of the country.
The approval comes at a time when Nigeria is seeking to stimulate economic growth, boost job creation, and support entrepreneurs amid rising inflation and economic pressures. Analysts say improved access to finance could help small businesses scale operations, increase productivity, and contribute more effectively to national economic growth.
