The Central Bank of Nigeria (CBN), along with the Bank of Industry (BOI) and the Development Bank of Nigeria (DBN), has made a noteworthy commitment to the Women Entrepreneurs Finance Code (We-Fi Code) with a specific focus on addressing the substantial funding gap impacting women-owned and led micro, small, and medium enterprises (MSMEs) in Nigeria. This initiative is particularly significant as it aims to tackle an estimated market opportunity of N294 billion that currently remains unserved or underserved. The CBN Governor, Mr. Olayemi Cardoso, highlighted that while many women entrepreneurs possess substantial potential, they often face challenges in accessing the financing needed to grow their businesses and contribute to the economy.
In his remarks at the CBN Headquarters in Abuja, Cardoso emphasized the potential of women entrepreneurs globally, stating that there are over 400 million of them whose sporadic contributions to the economy represent a remarkable growth opportunity. He pointed out that women entrepreneurs can unlock a $1.7 trillion opportunity for financial service providers and contribute between $5 to $6 trillion to the global economy. Despite having higher entrepreneurial activity than their male counterparts, a staggering 75 percent of Nigerian women’s entrepreneurial potential remains untapped, thereby underscoring the urgent need for targeted initiatives to address these gaps.
The We-Fi Code is positioned as a strategic avenue not just for economic empowerment but also for enhancing financial inclusion for women entrepreneurs across Nigeria. The CBN is set to coordinate its implementation through its Financial Inclusion Delivery Unit, which will track the Code’s impact on women’s financial inclusion and its alignment with the National Financial Inclusion Strategy. Cardoso has called for collective efforts from all stakeholders within the financial ecosystem to join in supporting the adoption of this crucial initiative, emphasizing that collaboration will be essential in transforming the landscape of women’s access to finance.
Dr. Olasupo Olusi, Managing Director of the Bank of Industry, echoed the importance of the We-Fi Code, which symbolizes a milestone in Nigeria’s progress toward gender equality and financial inclusion. He spotlighted the bank’s commitment to supporting women entrepreneurs, noting that BOI has financed 833 women-led businesses with a financial injection of N99 billion. Olusi reaffirmed that women are pivotal to various industries in Nigeria, driving innovation and economic growth, and highlighted that overcoming the financial barriers faced by these entrepreneurs is critical for their success.
In addition to prior initiatives, Olusi mentioned that the BOI prioritizes gender development as one of its six thematic focus areas. The bank aims to allocate at least 15 percent of its risk assets specifically to women-owned and women-led small and medium enterprises (WMSMEs). Meanwhile, Dr. Tony Okpanachi, Managing Director of the Development Bank of Nigeria, reported that the bank has disbursed over N187 billion through various Participating Finance Institutions, benefiting approximately 357,000 women-owned businesses, which account for 72 percent of its total beneficiaries.
With the We’re Fi Code currently implemented in 23 countries worldwide, it aims to fortify collaboration among financial service providers, regulators, and other stakeholders to enhance access to finance for women entrepreneurs. The declaration to commit to the We-Fi Code represents a significant step forward for Nigeria, signaling not only support for women entrepreneurs but also fostering an environment conducive to their growth and contribution to the economy. By focusing on women’s financial inclusion, this initiative holds the promise to transform the financial landscape, ultimately leading to broader economic development and gender equality in Nigeria.
