The Central Bank of Nigeria (CBN), Bank of Industry (BOI), and Development Bank of Nigeria (DBN) have collectively pledged their support for the Women Entrepreneurs Finance Code (We-Fi Code), an initiative aimed at addressing the N294 billion funding gap that hinders women-owned and women-led micro, small, and medium enterprises (MSMEs) in Nigeria.
At a ceremony in Abuja, CBN governor Olayemi Cardoso emphasised the untapped potential of women entrepreneurs. He pointed out that over 400 million women entrepreneurs globally have the capacity to expand their businesses, contribute to the economy, and generate employment, yet they face significant barriers in accessing financing. He noted, “This group represents a $1.7 trillion growth opportunity for financial institutions and could add between $5-6 trillion in value to the global economy.”
In Nigeria, a study by Women’s World Banking revealed that women’s entrepreneurial activity surpasses that of men by 4%. However, 75% of the potential market for women entrepreneurs in the country remains underserved, presenting an untapped opportunity worth N294 billion.
Cardoso highlighted that this initiative will provide a platform for Nigerian women entrepreneurs to scale their businesses, thereby fostering broader economic growth. The CBN’s Financial Inclusion Delivery Unit will oversee the implementation of the We-Fi Code, ensuring that its objectives are aligned with Nigeria’s National Financial Inclusion Strategy.
Cardoso urged all stakeholders in the financial sector to support this initiative by adopting the We-Fi Code.
Managing director of the BOI, Dr. Olasupo Olusi, underscored the importance of the We-Fi Code in promoting gender equality and financial inclusion. “Today marks a crucial milestone in Nigeria’s efforts to achieve gender equality and financial empowerment for women entrepreneurs. By adopting the We-Fi Code, we are reaffirming our commitment to these goals,” he said.
Olusi noted that the BOI has already taken steps to assist women entrepreneurs, having provided financing to 833 women-owned or women-led businesses, amounting to N99bn. “Women are the backbone of numerous industries across Nigeria, driving both innovation and economic growth. Unfortunately, they still face significant obstacles in accessing finance,” he added. BOI, through its dedicated Gender Desk, focuses on overcoming these challenges, and by December 2023, it had supported hundreds of women-led businesses.
Furthermore, BOI has committed to allocating at least 15% of its risk assets to women-owned MSMEs.
Similarly, DBN managing director Tony Okpanachi revealed that the bank has disbursed over N187 billion through Participating Finance Institutions, supporting 357,000 women-owned businesses, which account for 72 per cent of DBN’s beneficiaries. Okpanachi described the We-Fi Code as a “bold commitment” to addressing gender disparities in access to finance.
The We-Fi Code, already adopted in 23 countries, seeks to foster collaboration between financial institutions, regulators, and stakeholders to enhance access to finance for women entrepreneurs.
The formal declaration of commitment to the We-Fi Code represents a major stride in advancing the empowerment of women entrepreneurs in Nigeria.
