By outdoor-nature-child.com During a recent event in Abuja, Governor Olayemi Cardoso of the Central Bank of Nigeria raised alarm over a staggering N294 billion financing gap for women entrepreneurs. He noted that while Nigerian women are starting businesses at a rate four percent higher than their male counterparts, a substantial 75 percent of their market potential remains overlooked.
To address this pressing issue, Cardoso signed a tripartite agreement with the leaders of the Bank of Industry (BoI) and the Development Bank of Nigeria (DBN) aimed at enhancing financing for women-owned businesses through the Women Entrepreneurs Finance (We-Fi) Code initiative. This global program is designed to bring together financial service providers, regulators, and development banks to increase funding for women-owned and women-led Micro, Small, and Medium Enterprises (WMSMEs).
Despite the promising opportunities, Cardoso pointed to disheartening statistics that underscore a significant gap in Nigeria’s financial landscape. He urged banks to collaborate on innovating new financial products tailored specifically for this demographic. “The landscape of opportunities that banks have historically relied upon is changing, and the sector must adapt to seize these new possibilities seriously,” he asserted.
The CBN governor emphasized that We-Fi is not merely a topic of conversation—he is committed to ensuring its success. He highlighted the initiative’s potential to unlock the economic capabilities of women entrepreneurs and foster broader economic growth. Cardoso called on all stakeholders in the financial ecosystem to embrace the We-Fi code.
Dr. Olasupo Olusi, Managing Director of the BoI, hailed the initiative as transformative. He pointed out that the bank has made gender development a core focus, committing to allocate at least 15 percent of its risk assets to support women enterprises, aligning with President Bola Tinubu’s Renewed Hope agenda. By December 2023, the BoI had disbursed N99 billion to 833 women-led businesses.
Tony Okpanachi, Managing Director of the DBN, echoed these sentiments, describing the We-Fi code as a crucial catalyst for change within the financial ecosystem. He shared that the DBN has disbursed over N187 billion to more than 357,000 women-owned businesses, which represent 72 percent of its beneficiaries. Okpanachi reaffirmed the DBN’s commitment to systematically address the gender gap in access to finance, promising to appoint a senior leader to drive these initiatives.
Mr. Ndiamé Diop, the World Bank’s Country Director for Nigeria, emphasized that the We-Fi code is a significant advancement in closing financing gaps for women entrepreneurs. He stressed the necessity of a commitment from a wider coalition of financial service providers to collect gender-disaggregated data, which is essential for developing innovative solutions to bridge the financing gap.
Overall, this initiative marks a crucial step in empowering women entrepreneurs, driving economic growth, and ensuring that all women in Nigeria receive the financial support necessary to realize their full potential.