Investing in Women-Led Enterprises Key To Nigeria’s Next Growth Cycle — Imoh-Ita
Vivian Imoh-Ita Writes
Financial institutions in Nigeria and across Africa are being urged to reposition women-led enterprises from a social inclusion agenda to a core business growth strategy, as pressure mounts on banks to identify sustainable and low-volatility revenue streams.
Vivian Imoh-Ita, Head of Retail and SME Business at Union Bank of Nigeria, made this call in a thought leadership piece, arguing that the future of banking growth lies in unlocking the largely untapped potential of women entrepreneurs.
According to her, the industry is shifting from “inclusion as intent” to “inclusion as performance,” driven by tightening margins, recapitalisation demands, digitisation, and evolving risk expectations. She noted that women-led enterprises, though underfunded and underserved, have consistently demonstrated productivity and resilience.
“In Nigeria’s informal economy, where cash flow is strong but documentation is limited, institutions that can better price risk, scale distribution, and build trust-based financial relationships will emerge as winners,” she stated.
Imoh-Ita emphasised that women’s economic participation has often been mischaracterised as a social responsibility rather than a commercial necessity, a framing she described as costly for financial institutions.
Nigeria is home to an estimated 23 million women entrepreneurs in the micro-business segment, with women accounting for about 41 per cent of small and medium enterprise (SME) ownership. Despite this, access to formal finance remains disproportionately low, with women receiving only around 10 per cent of loans from financial service providers.
She cited data from institutions such as Enhancing Financial Innovation & Access (EFInA), SMEDAN, and the Global Findex, which reveal that 41 per cent of Nigerian women are financially excluded compared to 33 per cent of men. While many women access informal funding sources, only a small fraction secure bank loans.
Across Africa, the financing gap for women-led businesses is estimated at $42 billion, highlighting what she described as a significant missed opportunity for economic expansion.
Global data further reinforces the economic case. The McKinsey Global Institute estimates that advancing gender equality could add up to $12 trillion to global GDP, while the International Monetary Fund projects that equal participation by women could boost GDP by as much as 40 per cent in some countries. For Nigeria, closing the gender gap could increase GDP by approximately 23 per cent, according to analyses referenced by the Council on Foreign Relations.
Imoh-Ita identified three major barriers limiting women’s access to finance: collateral-heavy lending models that exclude asset-light but cash-generating businesses, insufficient financial data due to informal transactions, and slow loan processing systems that do not align with the fast-paced needs of small enterprises.
She advocated for a shift toward cash-flow-based lending, simplified onboarding processes, and expanded digital and agent banking channels to improve accessibility and usability of financial services.
Highlighting practical interventions, she noted that Union Bank has deployed over 58,000 agents through its UnionDirect network to extend financial services to rural and underserved communities. The bank has also disbursed more than N50 billion in micro-loans to smallholder farmers, market women, and informal entrepreneurs.
She further pointed to “alpher,” the bank’s women-focused financial platform launched in 2020, as a model for integrating tailored financial products with capacity building, mentorship, and market access initiatives.
Beyond access to capital, Imoh-Ita stressed the importance of capability development, noting that women entrepreneurs benefit from training in bookkeeping, pricing, digital commerce, and financial management to ensure long-term business sustainability.
She added that women typically reinvest a significant portion of their income—often up to 90 per cent—into their families and communities, creating multiplier effects that enhance education, healthcare, and local economic activity.
“The next phase of banking growth in Nigeria will favour institutions that translate insight into design — products that reflect customer realities, distribution that meets customers where they are, and risk models that go beyond traditional collateral,” she said.
Imoh-Ita concluded that investing in women-led enterprises is not merely a development initiative but a competitive advantage for financial institutions, urging stakeholders to accelerate efforts in building inclusive financial systems that drive both economic growth and long-term value.
