Women’s World Banking advocates for smart lending to empower Nigerian women entrepreneurs

Women’s World Banking (WWB), a global non-profit focused on advancing women’s economic empowerment, is intensifying efforts to narrow the gender gap in Nigeria’s financial inclusion landscape by advocating for smart lending practices.

By combining technology and education, this transformative approach streamlines credit processes, making them more efficient and accessible for women entrepreneurs.

Despite Nigerian women managing over 23 million microbusinesses, only 10% have access to formal financial loans, according to a PwC report. This limited access stifles their potential in a sector where they represent 41% of microbusiness owners.

WWB recently hosted a workshop in Lagos under the theme “Advocacy Convening: Smart Lending – Business Skills and Digital Capabilities for Smarter Borrowing and Better Outcomes.” The initiative brought together financial institutions and industry experts to strategize on equipping women with critical business and digital skills.

“The goal is not just to provide productive funding but to equip women with the skills and tools needed for long-term financial success,” said Angela Wambugu, WWB’s Director of Advisory Services for Africa. “By combining business education with digital innovation, WWB, alongside our partners, aims to unlock the financial potential of millions of women entrepreneurs across Nigeria.”

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Technology is at the heart of this transformation. Ngozi Ndefo, WWB’s Associate of Advisory Services for Africa, highlighted its power: “Women play a vital role in Africa’s economy, especially in Nigeria, where many are microbusiness owners. However, barriers such as low digital skills and limited access to financial services hinder their ability to scale.” She added, “Digital solutions, such as mobile banking and financial literacy apps, can significantly reduce these barriers. Smart lending, with its focus on proper bookkeeping, financial literacy, and digital tools, not only reduces default rates but also strengthens relationships between financial institutions and borrowers.”

Financial literacy remains a major challenge in Nigeria, where only 38% of adults are financially literate and 40 percent lack access to banking services, according to the Central Bank of Nigeria. For women, barriers such as limited access to smartphones exacerbate the issue. While 88% of Nigerian women own mobile phones, only 23 percent use smartphones. “Tailored or personalised digital solutions present a clear opportunity to turn this into an advantage,” Ngozi said. “Financial institutions must design tools that cater to women’s specific needs, ensuring both accessibility and security.”

Jennifer Iwueze, WWB’s Regional Research Lead for Africa, stressed the critical role of data-driven solutions. “Thorough research ensures that loan products and training programs align with customer capacities,” she said. “Segmentation, for instance, helps institutions design solutions that are age- and literacy-appropriate, reducing the risk of non-performing loans.” She added, “It is not enough to introduce digital services. Organizations must first understand whether their customers are ready for such tools.”

WWB’s collaboration with FCMB Microfinance Bank illustrates the impact of Smart Lending. “Since adopting smart lending principles, FCMB has introduced initiatives such as health insurance, digital credit, and financial literacy programs tailored to women’s needs,” said Fred Nwakolo, Acting Managing Director of FCMB Microfinance Bank. He shared a success story of a female borrower who accessed a N50,000 loan and later benefited from N300,000 in health insurance during a hospital stay. “This support enabled her to recover and resume her business without financial strain,” he noted. FCMB has also reduced loan disbursement times from two days to five hours, with plans to streamline further to two-hour disbursements.

Paul Adu, Managing Director of NUT Oke-Bola Microfinance Bank, echoed the importance of collaboration, sharing his institution’s commitment to raising the proportion of female borrowers from 73 percent to over 80 percent through more inclusive offerings. “The training provided practical tools for creating customer-centered products that address women’s unique financial needs,” he said.

Since its founding in 1979, WWB has transformed the lives of over 83 million women in emerging markets through access to financial products and services. In Nigeria, WWB collaborates with the Central Bank of Nigeria and other stakeholders to develop frameworks prioritizing women’s financial inclusion, particularly in underserved communities. With a target to empower 100 million women by 2027, WWB is driving inclusive growth that benefits households, businesses, and communities worldwide.