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By Chinwendu Obienyi
The World Bank and the Bank of Industry (BOI) have unveiled a $500 million development finance plan aimed at unlocking private capital, expanding access to credit for micro, small, and medium enterprises (MSMEs), and accelerating job creation across Nigeria.
The initiative, announced during the second edition of the Bank of Industry Development Lecture Series in Abuja, forms part of a broader strategy to reshape Nigeria’s development finance architecture and bridge the country’s estimated $120 billion MSME funding gap.
Speaking at the event, World Bank Country Director for Nigeria, Matthew Verghis, emphasized the need to redesign Nigeria’s development finance system to reflect global best practices and domestic growth priorities.
Verghis noted that Nigeria stands at a critical economic turning point, with emerging gains from ongoing fiscal and monetary reforms. He cited signs of macroeconomic stability, easing inflation, and rising foreign reserves as evidence that government policies are starting to yield results.
He commended Nigeria’s removal from the Financial Action Task Force (FATF) grey list, describing it as a “landmark achievement” that enhances investor confidence and signals that Nigeria’s financial system now aligns with international anti-money laundering standards.
“That single step enhances investor trust and strengthens the foundation for sustainable economic growth,” Verghis said.
Despite these gains, the World Bank Country Director cautioned that poverty and unemployment remain persistent challenges, stressing that many Nigerians are yet to feel the impact of macroeconomic stabilisation.
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“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,” he added.
Verghis explained that the World Bank–BOI framework seeks to transform Nigeria’s development finance landscape by mobilising private capital and leveraging digital innovation to close infrastructure and enterprise funding gaps.
He highlighted the Fostering Inclusive Finance for MSMEs (FIRM) Project, a $500 million initiative expected to attract at least four times that amount in private sector funding.
“The project is designed to bridge Nigeria’s $120 billion MSME financing gap through instruments such as subordinated debt, MSME investment funds, and partial credit guarantees,” he stated.
Verghis also underscored the importance of digital innovation in improving access to affordable credit and pointed to initiatives such as InfraCredit and the proposed Nigeria Infrastructure Finance and Guarantees Platform, which aim to de-risk investments and create a “bankable pipeline” of infrastructure projects.
In his remarks, Chairman, BOI, Mansur Muhtar, called for stronger collaboration among public institutions, private investors, and development partners to foster inclusive and sustainable growth.
“At the Bank of Industry, we believe that inclusive and sustainable investment-led growth is not just a goal, it is a necessity. Our mission is to drive industrial transformation by supporting enterprises, deepening sectoral linkages, and embracing technology to unlock new opportunities,” Muhtar said.
He reaffirmed the BOI’s commitment to its mandate of driving industrialisation and supporting Nigerian businesses through innovative and responsible lending.
