Women, capital and acceleration

A macroeconomic imperative, not a side issue

Across Nigeria, gender disparities in capital access continue to undermine the country’s economic potential, limiting women’s ability to build wealth, expand businesses, and drive sustainable development. Nigeria cannot afford to maintain financial structures that exclude or underfund nearly half of its population. The theme for this year’s International Women’s Day, Accelerate Action, is particularly relevant in addressing the issue of inclusive capital. The slow pace of progress in closing Nigeria’s gender financing gap is costing the country jobs, innovation, and GDP growth. It is time for bold, structural interventions that go beyond financial literacy programs and microcredit initiatives, pushing towards scalable, market-driven solutions that empower women.

Where Nigeria stands: The financing gap for women

Nigeria’s financial sector has made strides in improving access to finance, yet women remain at a disadvantage. As of 2023, only 35% of Nigerian women have access to formal financial services, compared to 55% of men (EFInA, 2023 A2F Survey). More critically, the ability of women to leverage financial services for long-term wealth creation remains limited.

Female entrepreneurs, who own nearly 40% of Nigeria’s SMEs (World Bank, 2023), continue to face significant financing barriers. Only 15% of these businesses receive formal credit, despite the well-documented economic benefits of investing in women-led enterprises. Structural obstacles such as collateral requirements, gender-biased lending practices, and a financial system that prioritizes short-term gains over inclusive growth, have left a massive financing shortfall of over US$20bn annually for women-led SMEs (IFC, 2024).

Recent government initiatives, such as the Development Bank of Nigeria’s Women Entrepreneurs Fund and the Central Bank of Nigeria’s AGSMEIS loan scheme, have attempted to close the gender financing gap. However, challenges such as bureaucratic delays, collateral constraints, and limited awareness have hindered their full impact. Private sector efforts, including LSETF’s Women Empowerment Fund and fintech-driven alternative lending models, are beginning to shift access dynamics but require further scale and policy reinforcement.

Rethinking financial solutions for women

Traditional financial solutions microfinance, small-ticket loans, and savings cooperatives have played a role in financial inclusion but have largely kept women’s businesses small. To accelerate action, Nigeria must implement more ambitious, scalable solutions that prioritize investment capital, structured financing, and market-driven policies that reshape financial participation for women.

Gender-Focused Financial Instruments: While Chile has not issued a dedicated gender bond, the country has successfully raised capital through social bonds that integrate gender equity objectives. These bonds have been used to finance initiatives improving women’s workforce participation and access to financial services. The success of these social bonds demonstrates that gender-inclusive financing can be embedded within broader sustainability- linked instruments. Indonesia has leveraged blended finance mechanisms through partnerships between the government, development finance institutions, and private sector investors to support women-led businesses. The Women Entrepreneurs Financing Initiative (We-Fi) has provided tailored funding to female entrepreneurs, improving their access to capital and enabling business expansion. A well-structured gender-inclusive financial mechanism in Nigeria, whether through social bonds, blended finance, or a gender-focused sovereign instrument could mobilize capital through public-private collaboration, targeting industries where women play significant roles, such as agriculture, trade, and services.

Alternative Credit Scoring Models: Collateral-based lending excludes many women who lack land ownership or formal assets. Fintech solutions in Kenya and India are using transactional data, mobile money records, and business cash flows to assess creditworthiness, allowing more women entrepreneurs to access growth capital. Nigeria’s financial institutions should accelerate the adoption of AI-driven credit models that de-risk lending to women without traditional collateral.

Blended Finance for Women-Led Enterprises: Nigeria can expand blended finance mechanisms, combining private investment with development finance, to unlock funding for women-led businesses at scale. South Africa’s Public Investment Corporation (PIC) has integrated gender-lens investing into its portfolio, ensuring institutional capital reaches female entrepreneurs. Nigeria’s pension funds and institutional investors should follow suit, allocating a portion of assets under management to gender-focused investments.

Tax Incentives for Gender-Lens Investing: Governments can incentivize banks and private investors to prioritize women’s financial inclusion through tax breaks and preferential regulatory treatment for gender-lens investment funds. Egypt’s Women’s Economic Empowerment Program includes financial incentives for banks that exceed gender-based lending targets—a model Nigeria can adapt to encourage private sector engagement in closing the gender financing gap.

The Cost of inaction: What Nigeria stands to lose

The economic case for inclusive capital is undeniable. A McKinsey Global Institute study found that closing gender gaps in financial access and broader economic participation could boost Africa’s GDP by up to $316 billion (McKinsey, 2019). Nigeria, as one of the continent’s largest economies, stands to gain significantly from prioritizing financial inclusion for women. Beyond economic growth, inclusive financial systems foster innovation, job creation, and social stability. Countries that have successfully closed gender finance gaps, such as Rwanda and Bangladesh, have witnessed higher national productivity rates, greater employment growth, and improved credit access for marginalized groups. If Nigeria fails to take decisive action, the country will continue to face challenges that could undermine its economic trajectory.

A lack of targeted financial inclusion policies will leave Nigeria with an underperforming SME sector, as women-led businesses struggle to scale due to limited capital access. The exclusion of women from financial systems will also result in lower national productivity, given that a significant portion of the workforce remains financially underserved and unable to contribute to the economy at its full potential. Additionally, Nigeria may miss out on critical foreign investment opportunities, as global markets increasingly prioritize Environmental, Social, and Governance (ESG) factors and gender-lens investing. Without urgent action, these factors will continue to constrain the country’s ability to achieve inclusive and sustainable economic growth.

Scaling success: Inclusive capital for high-growth sectors

Expanding targeted inclusive capital for women across key sectors will be instrumental in driving economic transformation. In agriculture, increasing financial access for women has the potential to enhance productivity across the entire value chain. Structured financing programs that provide women with affordable credit, training, and access to markets have proven successful in other countries. Uganda’s Women Agribusiness Initiative, for instance, has demonstrated how targeted financial interventions can reduce post-harvest losses, boost yields, and integrate women more effectively into agribusiness supply chains. Nigeria can replicate this by establishing agricultural financing programs that prioritize women-led cooperatives, expand access to climate-resilient farming tools, and introduce credit guarantees that de-risk lending to women farmers.

The creative sector is another area where targeted financing can unlock significant economic opportunities for women. In South Korea and the UK, the introduction of financial incentives and dedicated investment funds for women in film, fashion, and digital media has led to increased female participation in high-growth creative industries. These countries have structured funding pools that offer grants, equity investments, and low-interest loans specifically for female creators and entrepreneurs. Nigeria’s creative sector, which is a key contributor to GDP, can benefit from similar funding mechanisms that support female-led startups, drive digital innovation, and position women at the forefront of the global entertainment and fashion industries.

Trade remains a critical driver of economic activity, and targeted financial policies that support women in commerce can significantly improve national and regional trade flows. Rwanda’s Women’s Cross-Border Trade Initiative has successfully facilitated easier access to credit and improved export opportunities for women traders, leading to a measurable increase in cross-border commerce. Nigeria can adopt a similar approach by introducing trade finance solutions tailored to women, streamlining access to export credit, and simplifying customs processes for women-led businesses. Expanding women’s participation in trade finance and global supply chains will strengthen Nigeria’s position in regional and international markets.

The services sector presents yet another opportunity for accelerating inclusive economic growth. India’s Mudra Yojana Program has demonstrated how gender-focused small business lending can catalyze female entrepreneurship. Disbursing over US$50bn in small business loans to women, the program has enabled more female entrepreneurs to establish and expand businesses in healthcare, education, and retail. Nigeria can adapt this model by implementing gender-responsive financial instruments that provide working capital to women-owned service enterprises.

Integrating sector-specific strategies into Nigeria’s financial inclusion agenda is essential for maximizing the impact of inclusive capital. Leveraging proven global models and tailoring them to the country’s unique economic landscape, Nigeria can create a financial ecosystem where women are not just participants but key drivers of economic growth

A paradigm shift: Financial inclusion as economic acceleration

Nigeria cannot afford to sustain an economic model where women are underfunded and undervalued in the financial system. The era of incremental change is over. Now is the time to accelerate action by dismantling systemic financial barriers, deploying bold capital solutions, and ensuring that women are not just participants but primary architects of economic progress.

A woman with access to finance is not merely building her own business, she is fueling job creation, strengthening industries, and contributing to national prosperity. The theme of this year’s International Women’s Day, Accelerate Action, serves as a call to move beyond rhetoric and drive measurable impact. Financial institutions, policymakers, and investors must rise to the challenge, shifting from piecemeal approaches to transformative reforms that embed gender-inclusive finance at the heart of Nigeria’s economic agenda.

Chinwe Egwim is a member, BusinessDay Board of Economists