New financial package for Nigerian businesses

Nigerian President Bola Tinubu has approved a 200 billion naira (148.6 million USD) financial package aimed at supporting micro, small and medium enterprises (MSMEs) and industrialists. The plan, announced by Vice President Kashim Shettima, includes subsidies, loans, and targeted funding for different sectors of the economy.

Breakdown of the financial support

The package includes 50 billion nairas in subsidies, 75 billion nairas in loans for MSMEs, and 75 billion nairas specifically for the manufacturing sector. Industrialists may receive up to 1 billion nairas in financing from the Bank of Industry to support their growth and production.

Government engagement with entrepreneurs

Authorities also plan to hold quarterly meetings with entrepreneurs to address their concerns, involve them in public decision-making, and ensure the government follows through on its commitments. This engagement aims to improve the implementation of the new financial measures.

Challenges in accessing credit for Nigerian businesses

Financing remains a major challenge for Nigerian small businesses. According to the World Bank, fewer than one in twenty MSMEs can access bank credit. Available loans are often short-term, costly, and require guarantees that exclude many viable businesses.

International support for Nigerian MSMEs

To address these issues, the World Bank approved 500 million USD in December 2025 under the FINCLUDE program, managed by the Development Bank of Nigeria. This funding aims to provide credit access to 250,000 MSMEs, including a significant number led by women and in the agricultural sector.

Importance of MSMEs in Nigeria’s economy

MSMEs play a crucial role in Nigeria’s economy, contributing nearly half of the country’s GDP. Improved access to financing could boost their investments, create jobs, and support local processing industries, helping to strengthen the broader economy.