Report Claims 80% of Women-Owned Businesses Lack Formal Credit

A new report from the Federal Government has revealed a startling gap in Nigeria's financial ecosystem, showing that 80% of businesses owned by women currently lack access to formal credit. Speaking at a forum in Abuja today, officials highlighted that despite women contributing significantly to the informal economy and MSME sector, structural barriers and stringent collateral requirements continue to hinder their growth. The lack of financial inclusion is cited as a major bottleneck in the government’s drive for gender-responsive economic development under the "Renewed Hope" agenda.

The report emphasizes that many women-led enterprises remain trapped in the "micro" stage because they cannot secure the necessary capital to scale their operations or invest in modern technology. Financial experts have called for a total overhaul of the lending criteria used by commercial banks, suggesting that cash-flow-based lending and digital credit scoring could be more effective than traditional asset-based collateral for female entrepreneurs. The government has pledged to work with the Central Bank of Nigeria (CBN) to create dedicated intervention funds that specifically target women in agriculture, tech, and retail.

This development comes as the nation also grapples with a challenging security situation, with reports of over 50 casualties in communal clashes across Adamawa, Benue, and Plateau states over the last 48 hours. Additionally, security forces are still working to secure the release of 23 pupils abducted from a facility in Kogi State. These multifaceted challenges underscore the complex environment in which Nigerian businesses operate, further emphasizing the need for robust social and economic safety nets to protect the most vulnerable sectors of the economy.

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