FairMoney outlines wealth-building pillars for entrepreneurs
The Head of Wealth Management at FairMoney Microfinance Bank, Chinwe Iwobi, has outlined five key strategies aimed at helping Nigerian women entrepreneurs move beyond resilience to building sustainable, generational wealth.
Iwobi noted that women-led businesses account for about 40 per cent of small and medium-sized enterprises in Nigeria but continue to face systemic barriers in accessing the financial infrastructure needed to scale. She added that limiting female entrepreneurs has wider economic implications, affecting household stability and national growth.
She identified the separation of personal and business finances as the most critical step. According to her, mixing funds obscures profit margins and limits access to formal credit, stressing that financial discipline signals readiness for investment.
Beyond traditional emergency savings, Iwobi introduced the concept of an “Opportunity Fund” — a pool of liquidity reserved for expansion opportunities or discounted inventory purchases. She explained that in a volatile economy like Nigeria’s, businesses that succeed are often those prepared to act quickly.
She also warned against leaving surplus funds idle in current accounts, noting that inflation gradually erodes value. Instead, she advised entrepreneurs to channel excess cash into revenue-generating assets or fixed-term savings.
To build resilience, Iwobi encouraged business owners to diversify income streams, particularly by exploring digital products, and to adopt formal payment systems such as POS platforms. This, she said, helps create a verifiable financial history that improves access to credit.
Finally, she cautioned entrepreneurs against tying their entire net worth to their businesses, recommending that they invest part of their profits in personal financial instruments like money market funds to secure independent wealth.
Iwobi concluded that empowering women entrepreneurs is not only a social objective but an economic necessity, noting that thriving women-led businesses contribute significantly to stronger communities and broader economic development.
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