Experts Advocate Financial Inclusion For Nigerian Women-owned Businesses

Financial experts and stakeholders have decried the critical challenges facing Nigerian women in accessing finance, proffering actionable solutions to bridge the over $294 billion financing gap for the gender gap in funding opportunities.

Speaking in Lagos at a stakeholder meeting organised by the British Council tagged “Collaborative Action for Enhancing Access to Finance for Women-Owned Enterprises in Nigeria”, the Country Director, British Council, Donna Mc Gowan, underscored the efforts of the British Council to support enterprise development in Nigeria.

She buttressed that priority is being given to particularly women-led enterprises, through the investment climate reform that supported a study on enhancing access to finance.

Mc Gowan stated, “In 2023–2024, through the Investment Climate reform initiative, we supported a study on enhancing access to finance for women-owned enterprises. One key recommendation from that study was to convene a stakeholder summit to review the report’s findings and develop actionable implementation plans.”

She added, “It is great that we’re all here today as part of, and we very much look forward to sustaining this very healthy part. As the UK’s international organization, ensuring equal access to finance can only be a way to scale up.”

On his part, the director in charge of Monitoring and Evaluation at the Small Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Onesi Lawani, revealed that despite women constituting 41% of Nigeria’s Micro, Small, and Medium Enterprises (MSMEs), systemic barriers continue to limit their financial inclusion.

He remarked that obstacles hindering enhancing access to finance for Women-owned enterprises are deep-rooted traditions in some regions that discourage women’s financial autonomy.

Lawani said, “Some beneficiaries struggle with effectively managing funds, Poor record-keeping disqualifies women from accessing formal credit just as banks and lenders often require assets that many female entrepreneurs lack.”

However, reports indicate that women repay loans more reliably, but lenders still perceive them as high-risk as well as cases where grants meant for women are controlled or claimed by spouses/partners, leading to disputes.

“Within the next two years, we expect as this is no longer about diagnosing problems but enforcing solutions and measurable progress in dismantling these barriers,” Lawani asserted.

Stakeholders recommended financial literacy programmes, alternative financing models such as supply chain financing, and policy reforms like Nigeria’s Lefi Code, which aims to close the $294 billion financing gap for women.

Additionally, cultural shifts such as reducing gatekeeping among women entrepreneurs and increasing visibility for female-led businesses are crucial.

Similarly, a holistic strategy that incorporates commitments from stakeholders to collaborate on creating a more inclusive financial ecosystem for Nigeria’s women entrepreneurs to boost economic growth through education, innovation, and societal change to ensure women not only access but also effectively utilise financial services.