The World Bank (WB) and Bank of Industry (BOI) have rolled out a fresh $500 million development-finance initiative aimed at unlocking private-sector funding and expanding access to credit for micro-, small- and medium-enterprises (MSMEs) across Nigeria.
Announced during the second edition of the BOI Development Lecture Series in Abuja, the programme is part of a broader strategy to reshape Nigeria’s development-finance framework and address the estimated $120 billion MSME funding shortfall.
WB Country Director for Nigeria, Matthew Verghis, and BOI Chairman, Mansur Muhtar, emphasised that Nigeria stands at a pivotal juncture: progress is under way in macroeconomic stabilisation, inflation is easing, and foreign-reserves are rising, all signalling the start of stronger investor confidence.
Verghis described the removal of Nigeria from the Financial Action Task Force (FATF) grey list as a landmark achievement that bolsters the country’s financial-system credibility and draws in private-sector investment.
Yet, he cautioned that significant hurdles remain
“We are seeing progress in stabilisation, but the purchasing power of citizens remains weak because inflation is still high. To sustain these reforms, we must focus on policies that drive job creation and increase access to finance.”
At the heart of the new framework is the Fostering Inclusive Finance for MSMEs (FIRM) Project, a $500 million initiative under which the WB-BOI partnership seeks to attract at least four-times that amount in private capital. The project will deploy instruments such as subordinated debt, MSME investment funds and partial-credit guarantees.
As Verghis noted, “We are very excited about the FIRM project. It will expand MSME access to long-term capital and provide the financial infrastructure needed for growth.”
Muhtar, meanwhile, underlined the BOI’s commitment to transforming its role from a traditional lender into a development catalyst that supports not just finance but capacity-building, innovation and industrialisation. “At the Bank of Industry, we believe that inclusive and sustainable investment-led growth is not just a goal, it is a necessity,” he said.
He added: “Through our programmes, we are demonstrating that development finance is not only about disbursing loans. It is about enabling businesses to scale, build capacity, and become globally competitive. It is about supporting the real economy… the farmers, manufacturers, innovators, and creators who make up the backbone of our society.”
Muhtar also highlighted that Nigeria’s development-finance institutions must evolve in line with shifting realities—digital disruption, climate change, global economic uncertainty and new trade patterns all demand fresh financing models. “We must build stronger institutions, promote inclusive growth, and ensure that every Nigerian, regardless of background, feels the impact of development,” he emphasised.
The event was attended by a range of key sector-stakeholders including the African Development Bank, the Bank of Agriculture and former senior officials of the Central Bank of Nigeria, underlining the multi-stakeholder nature of the push.
By targeting the US $120 billion MSME financing gap, this initiative could help lift Nigeria’s growth trajectory by nurturing small-business productivity, creating jobs and broadening the tax base, thereby, strengthening both output and fiscal stability in a key sector of the economy.
