A new report from Moniepoint has revealed that women-owned businesses in Nigeria demonstrate significantly stronger loan repayment performance than their male counterparts, with default rates 2.5 times lower despite facing greater barriers to formal credit access.
Key Findings from Moniepoint's Impact Report
In its 2025 Impact Report, the fintech company disclosed that the default rate among women-owned businesses in its loan portfolio was 2.5 times lower than that of male-owned businesses. The report stated: "We found that the default rate for women was 2.5 times lower than for men. This is definitive evidence that lending to women-owned businesses is sound financial practice."
Lending to women-owned businesses grew by more than 300% during the year, while 62% of surveyed female entrepreneurs said the facility was the first formal business loan they had ever received. Women accounted for 36% of loans disbursed through Moniepoint's platform, exceeding the industry benchmark of 15% to 25% cited in the report.
Gender Gap in Financial Inclusion
Despite their strong repayment record, women-owned businesses continue to face significant financing constraints. Moniepoint noted that women-owned businesses account for roughly 33% of Nigeria's MSMEs. Citing EFInA data, the report highlighted that only 45% of Nigerian women have access to financial services compared with 56% of men, underscoring a persistent gender gap in financial inclusion.
The findings suggest that women entrepreneurs, who have historically struggled to secure financing due to collateral requirements and limited formal credit histories, may represent one of the strongest-performing segments of Nigeria's SME lending market. The report argues that alternative credit assessment models are helping expand access to finance for traditionally excluded entrepreneurs, particularly women operating in the informal economy.
Consistent Trends Across Lending Portfolios
Moniepoint's findings are consistent with previous lending data from other financial institutions. Credit Direct's 2025 Nigeria Credit Landscape Report, which analysed approximately 300,000 active borrowers, found that women received just 26% of all loans disbursed despite recording a 7.8% delinquency rate, significantly lower than the 10.9% recorded among male borrowers. The report also showed that women took slightly larger average loan amounts than men. "Despite representing only 26% of total borrowers, women repaid their loans better, indicating that their larger loan amounts do not mean greater credit risk," the report said.
The consistency across lending portfolios suggests that lower default rates among women borrowers may reflect a broader trend within Nigeria's credit market rather than the experience of a single lender. The findings also align with international research referenced by development finance institutions such as the International Finance Corporation (IFC), which has consistently highlighted the financing gap facing women-owned MSMEs despite evidence of strong repayment performance.
Policy Efforts to Close the Financing Gap
The findings come amid wider efforts to close the financing gap facing women-owned businesses in Nigeria. Earlier this year, the African Development Bank Group (AfDB) approved a $61 million financing package for the Development Bank of Nigeria (DBN) to boost access to affordable credit for women-owned and women-led MSMEs. The AfDB disclosed the facility in a statement, noting that it is designed to address persistent financing challenges faced by women entrepreneurs and promote more inclusive private sector growth in Nigeria.
