Cardoso: Empowering Women for Sustainable Economy

In this piece, James Emejo writes that the central bank’s renewed commitment to improving women’s access to finance remains a key strategy for fostering sustainable economic and social welfare

Only recently, the Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, signed a tripartite agreement with chief executives of the Bank of Industry (BoI) and the Development Bank of Nigeria (DBN) to unlock significant funding to women-owned businesses under the Women Entrepreneurs Finance (We-Fi) Code initiative.

The We-Fi Code is a commitment by financial service providers (FSPs), regulators, development banks and other financial ecosystem players to work together to increase funding provision to Women-owned and Women-led Micro, Small and Medium Enterprises (WMSMEs) around the world.

The initiative complements other central bank programmes aimed at boosting gender parity in the financial services landscape.

Cardoso, citing the Women’s World Banking survey, noted that though Nigerian women’s entrepreneurial activity was higher than their male counterparts by four per cent, 75 per cent of the women’s potential market in Nigeria remained unserved or underserved, leading to N294 billion financing gap amid huge market potential yet to be fully tapped.

The apex bank boss, who publicly disclosed his fascination with facilitating funding to women, added that this was one of the commitments he made during his confirmation hearing at the Senate.

Speaking during the country’s Public Declaration of Commitment to the global initiative in Abuja, Cardoso said, “I’ll share my experience. About a year ago—I was privileged to appear before the Senate for my confirmation hearing. One of the things I mentioned was my commitment to gender equality. I gave real examples of efforts I had made before assuming this position to help bridge the gender gap. The records are there, and you can find them online.

“Now, a year later, I am proud to say that we have made progress. I can boldly affirm to those who witnessed that Senate hearing that I have delivered on my commitment. This is just one step in a larger journey, but I want to assure you all that my dedication to this initiative remains unwavering. Earlier, I mentioned that this wouldn’t be just talk, and I meant it. I will give everything I have to ensure this succeeds.”

Providing statistics, he said over 400 million women entrepreneurs around the world have vast potential to grow their businesses, add value to the economy, and create jobs, but that they lack the financing to achieve their goals.

This group, he said, represented a $1.7 trillion growth opportunity for financial service providers (FSPs) and $5 trillion to $6 trillion in potential value addition to the global economy.

However, he said: “And some of the statistics we have heard around the world; we have a situation where women entrepreneurs are performing better in a lot of indices than men.

“But in Nigeria, we have a gap. And that indeed is a challenge to all of us to work together, and put hands together to ensure that we can bridge that gap.

“And also, to challenge the banking industry – because the opportunities that the banks may have had before in one direction are beginning to close. New opportunities are coming up.

“And those opportunities, I believe, are opportunities that the banking industry must take very seriously, and challenge themselves to come up with new and innovative products that will ensure that they can play their part in bridging that gap.”

Cardoso stressed that the code should not be seen as another talk shop, adding that he would personally ensure that it succeeds.

 Huge Funding Potential

Therefore, he said the initiative offered a tremendous opportunity to unlock the economic potential of women entrepreneurs across the country to help them expand their businesses and contribute to the overall economic growth.

According to the apex bank boss, the central bank, BoI and DBN, have emerged as the national champions to make the Public Declaration of Commitment to the We-Fi Code.

He said, “We are committing to leading by example and urging all the stakeholders in the financial ecosystem to also adopt the code as part of our collective drive to enhance the financial inclusion of women entrepreneurs in Nigeria.”

According to him, the Financial Inclusion Delivery Unit within the CBN serves as the coordinator for the implementation of the code and has been charged with the responsibility of monitoring its impact on women’s financial inclusion and the overall National Financial Inclusion Strategy goals.

The CBN governor noted that presently, the code has been implemented in 23 countries globally as Nigeria joins the global movement to ensure that Nigerian women entrepreneurs are better empowered to realise their full potential.

Cardoso said, “The national commitment to the We-Fi code signifies a powerful step forward towards the empowerment of women entrepreneurs as contributors to rapid economic growth and social development of our beloved nation, Nigeria.

“This is a clarion call to you all to join the national coalition, sign up to the code, and also introduce improved measures that will enhance financing for WMSMEs, as well as the collection of gender-disaggregated data, to track progress on overall women’s financial inclusion in Nigeria.”

Women Financing as New Goldmine for Banks

 According to Cardoso, banks once focused on financing the oil and gas sector of the economy to make their money adding that opportunities in this sector were gradually diminishing.

He said women’s financing presented a new goldmine for financial institutions to explore.

He said, “Indeed, this is a very significant moment. As we’ve heard from the statistics, around the world, women entrepreneurs are outperforming men in many indices. However, in Nigeria, we still have a gap, and this presents a challenge for all of us to work together and bridge that gap. We must challenge the banking industry as well.

“The opportunities that the banks once focused on are beginning to close, and new opportunities are emerging. I believe these new opportunities are ones the banking industry must take seriously. They need to challenge themselves to develop innovative products that will help bridge this gender gap.

“Fortunately, we don’t need to reinvent the wheel. If we look at what’s happening in other parts of the world, as we’ve heard today, we can see successful examples. We can adopt models that work and apply them here.”

Inevitable Enterprise

Central banks and other financial institutions often emphasise financing and supporting women to foster their economic participation which often results in significant economic, social, and developmental benefits.

There is a general consensus that advancing financing to women can boost economic growth and productivity, explore untapped potential, enhance financial Inclusion as well as promote Sustainable Development Goals (SDGs).

Improving funding support to women has also gone beyond just a matter of equity given the ability for financial stability and risk management; innovation and entrepreneurship, and reducing gender gaps and disparities in access to finance and resources.

The CBN, like other central banks, have policies aimed at reducing gender disparities as part of inclusive monetary and fiscal strategies.

Cardoso stressed that one doesn’t have to be a woman to support the course.

He said, “Now, I am not a woman—as I’m sure you can all see—but I don’t need anyone to tell me why this initiative is so important.

“With the collective will of the CBN’s leadership, as well as our partners who have come together for this initiative, we will succeed in bridging the gender gap. Ultimately, the goal is to ensure that Nigeria’s economy thrives. We shouldn’t view this as just a ‘gender issue’. It’s about galvanising all the resources we have, and this is a crucial part of that effort.

“I want to assure everyone here today—our stakeholders, partners, and all of you—that by working together and combining our collective efforts, we will succeed.”

The CBN’s Framework for Advancing Women’s Financial Inclusion in Nigeria is a roadmap to address the financial exclusion of women in Nigeria. The framework was developed in 2020 by the CBN, Enhancing Financial Innovation and Access (EFInA), and a gender subcommittee. It’s based on international best practices, Nigeria’s Sustainable Banking Principles, and the National Financial Inclusion Strategy.

The apex bank had embarked on several initiatives to advance women’s financial inclusion and close the gender gap in the banking sector.

The Framework for Advancing Women’s Financial Inclusion focuses on what can be done in the financial sector to advance women’s financial inclusion.

The We-Fi Code further reaffirmed the apex bank’s deliberate steps to empower women economically and bridge the gender gap in the banking sector.

According to Cardoso, women’s resilience and influence advance economic activities and play a significant role in advancing the economy.