Why 80% of Women-Owned Businesses in Nigeria Can’t Access Formal Credit

The Federal Government has revealed that over 80% of businesses owned by women in Nigeria struggle to get formal credit, which limits their ability to grow and succeed. 

This problem is holding back many women entrepreneurs from reaching their full potential and making a bigger impact on the country’s economy.

Women Entrepreneurs Facing Financial Challenges

Hajiya Imaan Sulaiman-Ibrahim, the Minister of Women Affairs and Social Development, shared this troubling news at the “Give-to-Gain” Summit in Abuja. 

The event, marking International Women’s Month in 2026, highlighted how women make up more than half of Nigeria’s population and contribute a large part of the labour force, especially in agriculture. However, they still face many barriers when it comes to accessing money, land, and business opportunities in the formal economy.

Most women-run businesses are part of the informal sector, making it harder for them to get formal financial support, like loans and credit. Sulaiman-Ibrahim emphasised the need for targeted actions to help women get better access to finance and markets.

Missing Opportunities in the Capital Market

Dr. Emomotimi Agama, the Director-General of the Securities and Exchange Commission (SEC), also spoke at the summit, stressing the need for more women to get involved in Nigeria’s capital markets. 

He pointed out that while women play a major role in the economy, owning 41% of small businesses, they still struggle to access the financial tools that could help them grow and create wealth.

Agama explained that the problem isn’t that women aren’t active in the economy, but that they are unable to move from just earning income to building wealth through investments and owning assets. He said, “The capital market helps businesses raise money for growth and allows families to build assets over time.”

Financial Inclusion for Women: Still Slow Progress

In 2023, financial inclusion for women in Nigeria improved to 70%, but Agama noted that progress has been slower for women compared to the rest of the population. He also highlighted that women, especially in northern Nigeria, face greater challenges accessing financial services, with many being excluded from basic financial tools.

Agama called for more focused efforts to support women-led businesses, including the creation of financial products that are tailored to women’s needs. He also suggested strengthening protections for investors to build confidence in the market.

Improving Women’s Access to Capital

Agama emphasised that Nigeria needs more women in leadership roles within the capital markets. He pointed out that only about 7% of CEOs in Nigerian companies are women, which limits their ability to influence the market and access opportunities.

He concluded by saying that for Nigeria to reach its goal of a one-trillion-dollar economy, women must have better access to capital markets. “The full participation of women in the capital market is not just a social goal; it’s an economic necessity for our national growth,” Agama said.

FAQs: Women-Owned Businesses and Financial Access

1. Why can’t many women-owned businesses access formal credit in Nigeria?

Many women-owned businesses face challenges in getting formal financial support due to being in the informal sector and facing barriers in accessing loans and credit.

2. How many women entrepreneurs are there in Nigeria?

Nigeria has about 23 million women entrepreneurs, who own around 41% of micro-businesses in the country.

3. What are the effects of not having access to formal credit?

Without access to formal credit, women entrepreneurs find it hard to grow their businesses, which affects their ability to contribute to Nigeria’s economy.

4. How can women gain better access to capital markets?

To improve access, there needs to be more policies and financial products designed for women, as well as greater representation of women in leadership positions in finance.

5. What role does the capital market play in helping women build wealth?

The capital market allows women to move from earning income to building lasting wealth through investments and business growth.