By Prosper Mene, April 11, 2025
Women-led businesses are a cornerstone of Nigeria’s economic growth, significantly boosting the nation’s GDP through their dynamic role in small and medium enterprises (SMEs), according to a February 2025 report by Vanguard. With women commanding 41% of the country’s micro-businesses, an estimated 23 million entrepreneurs, their contributions drive job creation and innovation nationwide. Yet, a critical barrier persists: only 5% of bank loans reach women-owned businesses, stifling their potential to scale.
Nigeria’s SMEs account for nearly 48% of GDP and 84% of employment, with women at the forefront of this vibrant sector. From bustling markets in Oyo to tech startups in Lagos, female entrepreneurs like Amina Yusuf, who runs a thriving agribusiness in Kaduna, exemplify resilience. “My business employs 15 people and supports local farmers,” Yusuf said. “But getting a loan to expand feels impossible—banks demand collateral I don’t have.”
The funding gap reflects systemic challenges. Cultural norms, such as patrilineal inheritance, often leave women without titled assets for loan security. A 2024 BusinessDay report noted that 98% of Nigerian women are excluded from formal credit markets due to complex application processes and low financial literacy. This disparity hampers growth, as women-led SMEs reinvest earnings into health and education, creating broader societal benefits.
Recent initiatives signal hope. The Bank of Industry’s N10 billion Project Guaranteed Loans for Women (GLOW), launched in March 2025, aims to provide low-interest loans and mentorship to female entrepreneurs. Similarly, digital platforms like Moniepoint are simplifying credit access, with 30% of their loans reaching women-owned SMEs for the first time. “These are steps forward, but we need systemic change,” said Dr. Ngozi Egbuna, a financial inclusion expert. “Banks must rethink collateral rules and prioritize women’s potential.”
Advocates urge bolder action, noting that closing the $1.7 trillion global gender finance gap could add $6 trillion to GDP. For Nigeria, empowering women entrepreneurs isn’t just economic sense, it’s a necessary path to inclusive prosperity.