Despite their determination and resilience, women-owned businesses in Nigeria continue to face significant barriers that threaten to stifle their growth and impact.
The entrepreneurial spirit of Nigerian women is undeniable, with many turning their passions into thriving businesses that drive innovation and economic growth. However, a pressing issue lies beneath the surface of this success: inadequate access to funding.
Recent research by Mastercard shows that Nigerian women are embracing entrepreneurship at an extraordinary rate, with eight in ten (83%) women identifying as entrepreneurs, far higher than the regional average of 51% across Eastern Europe, the Middle East, and Africa (EEMEA).
In Nigeria, 49% of women business owners started their businesses to pursue a dream, while 45% aimed to bring a great idea to life. This highlights the strong sense of purpose among female entrepreneurs.
However, despite this entrepreneurial drive, Nigerian women face significant barriers to starting and sustaining their businesses, citing lack of funding (57%), lack of financial resources (56%) and the difficulty in securing startup capital (40%) as the biggest challenges.
The harsh reality is that women-owned businesses in Nigeria receive only a fraction of the funding they need to thrive. This holds back not just individual potential but the nation’s economic progress. Statistically, only 10% of small business loans in Nigeria are given to women. Yet women repay 95% of loans—twice the rate of men.
According to a 2024 report by Moniepoint, a microfinance bank, a mere 16.7% of women-owned businesses can secure loans from financial institutions. Consequently, most women business owners are forced to rely on personal savings or informal funding sources, such as family and friends. This significant financing gap is especially evident in agriculture, where women make substantial contributions yet receive fewer than 10% of SME loans.
What’s at stake?
The benefits of supporting women-owned businesses extend far beyond individual success stories, contributing significantly to Nigeria’s economic growth and development. Empowering women entrepreneurs also unlocks new opportunities, fuels innovation, and drives growth across Nigeria’s GDP. As women-led businesses flourish, they create jobs, stimulate local economies, and enhance the nation’s global competitiveness. Investing in women is not just a matter of equality; it’s a strategic move to strengthen Nigeria’s economic future.
Sign the “We Want More” petition to fund women-owned businesses
To address this challenge effectively, we are taking deliberate steps to provide Nigerian women with the necessary support to grow their businesses. Furthermore, you can play a crucial role by signing the “wewantmore” petition, which advocates for banks to implement proactive measures to bridge the funding gap.
By doing so, we can collectively create a more inclusive and supportive environment for women entrepreneurs to thrive. Join the movement to empower Nigerian women entrepreneurs and shape the future of our economy—every signature counts.
