Empowering Women Entrepreneurs: Driving Nigeria’s Economic Development Through Inclusive Initiatives

Dr. Olasupo Olusi

Nigeria, the giant of Africa, is known for its vibrant energy and industrious people. Its diverse landscape stretches from Lagos’ bustling megacity to the Northern Savannah’s arid plains.

With a population exceeding 200 million, the nation is a cultural and economic powerhouse on the continent.

Despite its vast resources and potential, Nigeria’s economic story is one of mixed progress.

The country is rich in natural resources, particularly oil, which has fueled economic activity for decades. Between 1999 and 2010, the economy grew from US$36 billion to nearly US$555 billion, catapulting the country into the global club of new lower-middle-income economies.

However, over-reliance on this single sector has led to vulnerabilities. The exportation of crude oil leaves government revenue at the mercy of fluctuating global oil prices.

Recent years have witnessed slow economic growth, with the decline in global oil prices impacting government revenue. However, this has presented a unique opportunity. About 60 million Nigerians are of working age, a human resource many other countries lack, with roughly half being women.

As the Managing Director of the Bank of Industry (BOI), it is my belief that unlocking this potential requires a multi-pronged approach. Investing in infrastructure, fostering a business-friendly environment, and promoting development are crucial. Nigeria can step onto a sustainable and inclusive economic growth path by addressing these challenges and capitalising on its strengths.

In Nigeria’s quote-unquote patriarchal society, it is important to help balance the books and have initiatives dedicated to helping women. These things will eventually build the economy. I firmly believe Nigeria’s economic prosperity hinges on women’s full and active participation, as the systemic barriers to women’s active participation come at a huge economic cost.

A 2018 World Poverty Clock report stated that Nigeria has overtaken India as the country with the highest number of people living in extreme poverty. This number will worsen with Nigeria’s high population growth rate.

March, designated as International Women’s Month, is a timely reminder that we can only make collective progress if half of the population is making significant progress.

This year’s theme, “Inspire Inclusion,” perfectly resonates with BOI’s unwavering commitment to making this a reality by empowering women entrepreneurs and fostering a truly inclusive economic landscape.

Nigeria’s economic growth trajectory is intricately intertwined with the ingenuity of its female entrepreneurs. From bustling urban centres to remote rural communities, women-led businesses are making significant strides, breaking barriers and reshaping industries. These entrepreneurs are creating wealth, driving social change, empowering communities, and gradually paving the way for a more inclusive and equitable future.

Across the country, these women are venturing into diverse sectors, ranging from agriculture and manufacturing to technology and retail. Their enterprises, spanning micro, small, and medium-sized businesses, contribute to job creation, income generation, and poverty alleviation.

By harnessing their entrepreneurial spirit, women are driving innovation, fostering resilience, and unlocking new opportunities for growth and development.

However, a significant portion of these women-led ventures fall under the category of “Nano” businesses. These are small-scale enterprises that operate at the grassroots level, often in informal sectors, with a turnover of less than N250,000 annually. Although often overlooked, these small businesses serve as the bedrock of local communities.

They comprise street vendors, artisans, petty traders, and service providers and are the backbone of local economies, serving as engines of growth and drivers of social cohesion. Despite their modest scale, Nano businesses are pivotal in driving economic activity, particularly in rural and underserved communities.

These enterprises provide essential goods and services to local populations, contribute to household incomes, and create employment opportunities, especially in areas where formal employment is limited.

The collective impact of these Nano businesses is undeniable. They contribute significantly to the informal sector, promote financial inclusion by integrating women into the financial ecosystem, and foster social stability by providing essential goods and services at the local level.

Moreover, Nano businesses are crucial in preserving traditional crafts, promoting cultural heritage, and fostering community solidarity. Essentially, Nano businesses are the building blocks of a thriving and inclusive economy.

While these businesses are great, there’s room for bigger and better things for women. Studies show that men own more formal/high-level businesses than women.

This problem is what BOI is tackling with initiatives that help grow female-led businesses. Supporting women entrepreneurs aligns with the United Nations Sustainable Development Goals (SDGs), particularly Goal 5, which aims to achieve gender equality and empower all women.

By creating a level playing field for women in business, there can be progress towards a more equitable society where opportunities are accessible, talents are recognised, and diversity breeds progress.

At BOI, we recognise the immense potential of female entrepreneurs and their critical role in propelling the nation forward. This understanding fuels our dedication to providing them with the necessary support to thrive. We aim to address women’s specific business challenges through targeted initiatives, including access to finance, mentorship, and business development resources.

One such initiative is the Presidential Conditional Grant Scheme (PCGS), a fifty-billion Naira grant scheme to support eligible Nano Business owners. The Grant will be disbursed to at least 1,000 beneficiaries (focusing on Women and Youths) per Local Government Area across Nigeria. The target nano businesses include traders, food vendors, ICT businesses, transporters, artisans, and creatives.

This is the grant component of the initiative, as beneficiaries are not required to pay back. To be eligible, beneficiaries must own a nano business, be willing to register a business name as their business grows and be willing to engage at least one additional staff member if the business turnover increases. This initiative provides targeted financial support and ensures more jobs are created.

Furthermore, BOI’s collaboration with the African Development Bank (AfDB) on the Affirmative Finance Action for Women in Africa (AFAWA) initiative shows our commitment to advancing gender equality and economic empowerment. AFAWA aims to bridge the $42 billion financing gap facing women in Africa.

The goal is to increase access to finance for women entrepreneurs across the country, providing them with the financial resources they need to start and grow their businesses. The African guarantee fund will provide a 4.2 million dollar portfolio guarantee, up to 75% of loans made to women-owned businesses, and capacity-building programmes for women.

By leveraging innovative financing mechanisms and fostering partnerships with financial institutions, BOI is expanding access to finance for female entrepreneurs and encouraging inclusive economic growth.

Through our dedicated gender desk, BOI coordinates loans and partnerships to support and empower female entrepreneurs. We support these businesses with a significant percentage of female staff, promoting gender equality in business and hiring.

One of our beneficiaries, Lakowe Golf and Country Estate, could move from our SME desk to the large industry desk, particularly the gender desk, due to the business’ huge female employee base. This move helped the business gain access to the funds that have resulted in its growth to the spectacle it is today.

The Business Resilience Assistance for Value-adding Enterprises for Women in Nigeria (BRAVE Women Nigeria) further proves our dedication to supporting female entrepreneurs. A part of a wider initiative funded by the Women Entrepreneurs Finance Initiative (We-Fi), it is implemented by the Islamic Development Bank and executed by BOI.

The project seeks to enable an empowering business environment for women entrepreneurs in Nigeria and strengthen their resilience. I truly believe that these BOI projects will go a long way towards ensuring women’s economic empowerment.

As the world draws its curtains on the International Women’s Month celebration, my hope is that we truly maintain the energy to acknowledge and celebrate the pivotal role female entrepreneurs play in driving Nigeria’s economy but, most importantly, foster inclusion in the truest form by breaking the barriers and bottle necks that hinder women from accessing finance or climbing the corporate ladder.

It is my hope that we can move away from looking diverse in photo ops and actually be inclusive in our various organisations so we can collectively unlock a brighter future for our nation.

*Dr. Olasupo Olusi is the MD/CEO, Bank of Industry.

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