AfDB Approves $61 Million Package to Support Women-Owned Businesses in Nigeria

The African Development Bank (AfDB) has greenlit a significant $61 million financing package to improve access to credit for women-led and women-owned businesses in Nigeria. This initiative is particularly focused on key sectors such as agriculture, clean energy, and healthcare.

The bulk of the funds will be channelled through the Development Bank of Nigeria (DBN) and is structured into three main components:

• $50 million line of credit dedicated to supporting women-owned businesses.
• $8 million concessional facility under the Agri-Food SME Catalytic Financing Mechanism (ACFM).
• $3 million grant provided via the Affirmative Finance Action for Women in Africa (AFAWA) initiative, backed by the Women Entrepreneurs Finance Initiative (We-Fi).

With over 95% of the funds set to go to small and medium-sized enterprises (SMEs) owned by women, this move aims to bridge the persistent financing gap many female entrepreneurs face in Nigeria. This is especially important in light of the economic challenges women-led businesses often encounter in accessing affordable credit.

The AfDB’s approach combines long-term financing, concessional resources, partial credit guarantees, and technical assistance. This holistic method is designed to ensure that micro, small, and medium-sized enterprises (MSMEs) can gain easier access to loans at more affordable rates.

Abdul Kamara, AfDB’s Nigeria Country Director, emphasised the importance of women entrepreneurs as a key driver of economic growth, describing them as “underleveraged economic assets.” He further noted that the initiative would contribute to inclusive economic transformation by providing more opportunities for underserved businesses.

This initiative arrives at a crucial time when Nigeria’s lending environment is faced with high commercial bank rates and tight monetary policies, which have made it increasingly difficult for small businesses, particularly those owned by women, to access the credit they need to grow.

With this strategic financing package, the AfDB is reinforcing its commitment to advancing gender equality and economic empowerment for women in Nigeria, helping them break through the barriers that have historically hindered their entrepreneurial potential.