In a nation where half of the 237.5 million citizens are women, empowering female entrepreneurs in Nigeria isn’t just a noble cause—it’s an economic necessity. As stated in Global Voices, women own 41 percent of Nigeria’s micro-businesses, reflecting their significant contribution to the nation’s economy. Despite this, many face barriers that hinder their business growth.

Understanding the Challenges

Nigerian women entrepreneurs grapple with systemic challenges, including access to startup capital. A staggering 62 percent of women cannot achieve their business goals due to financial constraints. Societal expectations, cultural norms such as patrilineal inheritance, and lack of financial literacy further complicate the issue. Often, women’s limited access to property titles and formal financial systems means they are marginalized by traditional banking methods.

Overcoming Financial Barriers

A mere 16.7 percent of women receive loans from financial institutions, despite evidence showing a lower loan default rate among women. Many financial institutions demand collateral in the form of titled assets, which patrilineal inheritance practices largely deprive women of. Developing awareness and encouraging reforms in financial practices could serve as a catalyst for change.

Why Investment Matters

Investment in women-led enterprises is crucial for closing the gender funding gap. This not only empowers individual women but also creates a ripple effect, benefiting families and communities. By investing more in women’s education and ensuring they have equal access to financial tools, we pave the way for a stronger economic foundation and societal norms that favor gender equality.

Taking Action: Policy and Advocacy

Efforts to support female entrepreneurs are underway. Nigerian government initiatives, coupled with advocacy from organizations like the Gates Foundation, focus on providing financial access and literacy, enabling women to participate actively in the economy. According to notable advocates like Fifehan Osikanlu, empowerment is not just about inclusion but about achieving ownership and leadership roles.

The Road Ahead

The path to bridging the funding gap is long but navigable. By embracing policies that encourage financial literacy and reforming lending practices to be more inclusive, we can create an environment where Nigerian women entrepreneurs thrive. The economic and social payoffs of this endeavor will be profound, including boosting GDP and promoting equitable economic growth.

Inspiration for this change can be drawn from successful female entrepreneurs who have overcome these hurdles. Their stories and struggles serve as a motivating force for systemic change, urging society to forge a path towards equality and prosperity.