Female entrepreneurs urged FG on funding barriers on businesses

A group of some notable female entrepreneurs have launched a campaign seeking equitable funding for women-owned businesses across the country. They said that women entrepreneurs receive less than 10 per cent of Small and Medium Enterprises (SMEs) loans, despite data showing that 95 per cent of loans to women are repaid. They also said that […]

A group of some notable female entrepreneurs have launched a campaign seeking equitable funding for women-owned businesses across the country.

They said that women entrepreneurs receive less than 10 per cent of Small and Medium Enterprises (SMEs) loans, despite data showing that 95 per cent of loans to women are repaid.

They also said that women in businesses face steep collateral demands, high interest rates, and rigid lending systems that consistently shut them out.

The campaign tagged, ‘WEEwantMore,’ urged the Central Bank of Nigeria (CBN) and other financial institutions to act on the various bottlenecks creating series of barriers to funding women-owned businesses in Nigeria.

The women group in a joint statement anchored by the Gate Foundation said that despite their notable contribution to Nigeria’s economy, women entrepreneurs continue to be left behind as far as funding is concerned.

Those involved in the campaign included, Folu Storms, Jemima Osunde, Abosede George-Ogan, Omowunmi Akingbohungbe, Tosin Olaseinde, Lehie Balde, Habibah Waziri, Sa’adatu Hamu-Aliyu, Ekemini Akpakan, Fola Ibowu, Mojisola Humponu-Wosu and Chioma Omeruah, among others.

The campaigners urged Nigeria’s powerful financial players to take immediate, structural steps to unlock capital for women entrepreneurs.

They urged all the relevant policymakers and CEOs of major Nigerian banks to act accordingly.

The statement also quoted a Gates Foundation survey, which stated that 62 per cent of Nigerian women lack the capital to start or expand their businesses, with limited access to affordable loans and outdated collateral requirements continuing to restrict growth.

“According to a Gates Foundation survey, 62 per cent of Nigerian women lack the capital to start or expand their businesses, with limited access to affordable loans and outdated collateral requirements continuing to restrict growth. Economists estimate that fully supporting women’s participation in the economy could increase Nigeria’s GDP by $229 billion,” they said.

They among others demanded the creation and expansion of dedicated funds for providing credit to women; reservation and allocation of 40 per cent of MSME loan portfolio to women and simplify collateral requirements, using approaches such as cash flow financing; institution of a 30 per cent gender-based lending targets for commercial banks by the CBN and allocation of 50 per cent of government-supported MSME intervention funds to women-led businesses.