The Federal Government has issued a direct challenge to banks and financial technology companies, urging them to take concrete steps to close Nigeria’s estimated $14.8 billion gender financing gap. The call was made by the Vice President, Kashim Shettima, during a high-level meeting with stakeholders in the financial sector, where he highlighted the systemic exclusion of women from formal credit markets as a critical impediment to national economic growth.
Shettima Highlights the Scale of the Gender Financing Gap
Speaking at the event, Vice President Shettima emphasized that the $14.8 billion gap represents not just a missed opportunity for women entrepreneurs, but a significant drag on the entire Nigerian economy. According to him, women-owned businesses in Nigeria face disproportionately higher barriers to accessing finance compared to their male counterparts, despite evidence showing that women are more reliable in repaying loans. “The data is clear: when women have access to capital, they invest in their families, communities, and the broader economy. Yet, our financial system continues to under-serve them,” Shettima stated.
The Vice President pointed to global research indicating that closing the gender financing gap could add billions of dollars to Nigeria’s Gross Domestic Product. He noted that the current exclusion is not due to a lack of viable businesses, but rather to structural biases in lending practices, collateral requirements, and financial literacy gaps. The Federal Government, he said, is committed to creating an enabling environment but needs the private sector to step up with innovative products and services tailored to women.
Banks and Fintechs Urged to Innovate
During the meeting, financial institutions were specifically called upon to develop gender-responsive lending products that address the unique challenges faced by women entrepreneurs. The Vice President urged banks to reduce collateral requirements, simplify application processes, and leverage alternative data for credit scoring. Fintechs, he added, are particularly well-positioned to use technology to reach underserved women in rural and peri-urban areas.
“We are not asking for charity; we are asking for smart business,” Shettima said. “Banks and fintechs must see women as a profitable and low-risk segment. The $14.8 billion gap is a market opportunity waiting to be unlocked.” He also announced that the government would work with the Central Bank of Nigeria to review existing policies that may inadvertently exclude women, and to provide incentives for lenders that meet gender inclusion targets.
Impact on the Broader Economy
Industry experts at the meeting noted that closing the gender financing gap could have a transformative effect on Nigeria’s economy. Women-led businesses are concentrated in sectors such as agriculture, retail, and services, which together account for a large share of employment and GDP. By unlocking credit for these enterprises, the government hopes to stimulate job creation, reduce poverty, and boost tax revenues.
Representatives from the Bankers’ Committee and the Fintech Association of Nigeria responded positively to the challenge, pledging to develop new products and partnerships. However, they also raised concerns about the high cost of capital, regulatory bottlenecks, and the need for more robust credit infrastructure, such as a national identity system and credit bureaus. The Vice President acknowledged these challenges and promised that the government would address them through policy reforms and investments in digital public goods.
The meeting concluded with a commitment to establish a joint task force comprising government officials, bankers, and fintech leaders to monitor progress and report on specific milestones within the next 12 months. The task force is expected to propose concrete measures, including a possible gender-lending scorecard for financial institutions, to ensure accountability and transparency in bridging the $14.8 billion gap.
