Experts Highlight Funding Barriers for Women Entrepreneurs in Nigeria

By Iyojo Ameh

A recent media conversation on women’s economic empowerment organised by Gatefield Nigeria and hosted by Hannatu Asheolge, spotlighted the significant funding gap faced by female entrepreneurs in Nigeria.

Experts and business leaders, including Nsidibe-Abasi, Joy Una, Shirley Ewang, Chichi Arinze, Uzoamaka Igweike, Osasu Igbinedion Ogwuche, and Fifehan Osikanlu, discussed the key barriers to financial inclusion and proposed policy solutions to bridge the gap.

According to data presented by one of the panelist from a Gates Foundation survey of over 100,000 Nigerian women, 62% identified lack of access to capital as their primary obstacle to starting or expanding their businesses. Other major barriers include structural exclusions due to stringent funding requirements, care economy constraints, and low business profits.

“Women want to participate in the economy and build wealth, but financial systems are not designed to accommodate them,” Una stated, emphasizing the need for reforms that ensure financial inclusion.

Shirley Ewang highlighted how limited access to capital affects women across various sectors, including agriculture, fashion, and food businesses. Many women entrepreneurs struggle with land ownership restrictions and inadequate legal protections, further hampering their growth.

“Women’s economic empowerment not only benefits them but also strengthens their families and communities,” Ewang noted. She stressed that improving financial access for women would have widespread economic benefits.

Panelists proposed several policy interventions to address these challenges which include: Less Stringent Funding Requirements – Making funding more accessible by offering alternative collateral options. Financial Literacy Programs – Incorporating financial education into funding initiatives to help women navigate loan and investment opportunities.

Revised Labor Laws – Updating policies to support women entrepreneurs, including workplace reforms that recognize the demands of the care economy and Support for Women-Owned Businesses – Incentives such as government-backed loans and grants tailored to female entrepreneurs.

Business owners Chichi Arinze, founder of Auto Girl, and Uzoamaka Igweike of Loomcraft Chocolate shared their struggles in securing venture capital despite having profitable businesses. Arinze noted that female entrepreneurs in male-dominated industries often face additional hurdles in securing funding. Igweike highlighted the need for improved record-keeping and knowledge of available financial opportunities.

Osasu Igbinedion Ogwuche pointed to successful local and international funding initiatives, such as the Dangote and Bank of Industry (BOI) funds, as well as the Grameen Bank model in Bangladesh. “Micro-lending schemes have the potential to transform the economic landscape for women,” she stated, advocating for their expansion in Nigeria.

Fifehan Osikanlu and Ogwuche emphasized the importance of media in shaping public perception and influencing policy. They called for more data-driven reporting and success stories that highlight the contributions of women entrepreneurs to economic growth.

The discussion concluded with a strong message for policymakers: Nigeria must prioritize financial inclusion for women if it seeks to harness its full economic potential. With women making up 50% of the country’s economy and showing a high loan repayment rate of 95%, the case for increased financial support is compelling.

As Nigeria continues to grapple with economic challenges, investing in women entrepreneurs may hold the key to sustainable development and national growth.