Experts Call for Increased Financial Inclusion for Nigerian Women-Owned Businesses

Financial experts and stakeholders have raised concerns over the significant challenges faced by Nigerian women in accessing finance, offering actionable solutions to bridge the over $294 billion financing gap that limits funding opportunities for women-led businesses.

At a stakeholder meeting in Lagos organized by the British Council, titled “Collaborative Action for Enhancing Access to Finance for Women-Owned Enterprises in Nigeria,” Donna McGowan, the Country Director of the British Council, highlighted the organization’s efforts to support enterprise development in Nigeria, with a particular focus on women-led enterprises.

McGowan explained that priority is being given to these businesses through investment climate reforms that have backed studies aimed at improving financial access for women. She 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 was to convene a stakeholder summit to review the findings and develop actionable implementation plans.”

She further emphasized the importance of continuing these efforts: “It is great that we’re all here today as part of this initiative, and we look forward to sustaining this important work. As the UK’s international organization, ensuring equal access to finance is essential to scaling up women’s businesses.”

Onesi Lawani, the Director of Monitoring and Evaluation at the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), highlighted the systemic barriers limiting financial inclusion for women. Despite women making up 41% of Nigeria’s Micro, Small, and Medium Enterprises (MSMEs), deep-rooted traditions and institutional obstacles continue to hinder their access to finance.

Lawani remarked, “Some women face challenges in effectively managing funds. Poor record-keeping often disqualifies them from accessing formal credit, while banks and lenders frequently require assets that many female entrepreneurs lack.”

Reports also indicate that, despite women’s strong track record in loan repayment, lenders still perceive them as high-risk, and in some cases, grants intended for women are diverted or claimed by male spouses or partners, leading to disputes.

“Over the next two years, this effort will no longer be about diagnosing problems but enforcing solutions and ensuring measurable progress in dismantling these barriers,” Lawani added.

Stakeholders at the event suggested several measures to improve access to finance for women, including financial literacy programs, alternative financing models such as supply chain financing, and policy reforms like Nigeria’s Lefi Code, aimed at closing the $294 billion financing gap for women.

Cultural shifts, such as reducing gatekeeping among women entrepreneurs and increasing the visibility of female-led businesses, were also deemed essential for fostering greater financial inclusion.

A comprehensive strategy was recommended, incorporating commitments from various stakeholders to create a more inclusive financial ecosystem. This approach would help Nigerian women entrepreneurs gain better access to financial services, boosting economic growth through education, innovation, and societal change.