The Governor, Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, on Wednesday, 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.
Speaking at the country’s Public Declaration of Commitment to the global initiative in Abuja, 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.
He said there is a financing gap of N294 billion as market opportunity are yet to fully tapped.
The CBN governor 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 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, 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 said We-Fi should not be seen as another talk-shop, addding that he would personally ensure that its succeeds.
Therefore, he said the initiative offered 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 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.”
He said the Financial Inclusion Delivery Unit within the CBN serves as the coordinator for the implementation of the code and had 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 had been implemented in 23 countries globally as Nigeria joins the global movement to ensure that Nigerian women entrepreneurs are better empowered to realize 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, and 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.”
In his remarks, Managing Director/Chief Executive, BoI, Dr. Olasupo Olusi, described the initiative as a “transformative movement”, and commended the central bank, DBN and other stakeholders for their dedication to the noble cause.
He said the bank recognises the need to focus on gender development and had prioritised gender as one of its six thematic areas of focus.
Olusi pointed out that the bank had further developed a comprehensive gender strategy that will shape its efforts over the next few years.
He added that as part of this bold vision, BoI had committed to allocating at least 15 per cent of risk assets to women enterprises, a clear demonstration of its resolve to expand financial access and foster the growth of women entrepreneurs nationwide in line with President Bola Tinubu’s Renewed Hope agenda.
He also disclosed that through its dedicated gender desk, BoI had tailored support to address financing barriers, adding that as of December 2023, the sum of N99 billion had been disbursed to 833 women-led businesses to help them thrive.
He stressed that through We-Fi Code, “we are taking decisive steps to dismantle the barriers women face. By leveraging data and uniting key stakeholders, we aim to ensure a more equitable distribution of financial resources.”
Also, in his remarks, Managing Director/Chief Executive, DBN, Tony Okpanachi, said We-Fi code remained a catalyst for change across the country’s entire financial ecosystem, adding that by working together, “we can create an atmosphere in which women entrepreneurs are not just included but also empowered to thrive”.
While expressing gratitude to the central bank for its leadership in driving the initiative, and the partnership with BoI, Okpanachi further expressed optimism on the capacity of the code to improve access to finance for women-owned enterprises across the country.
The DBN boss pointed out that the bank’s commitment to the code aligns seamlessly with ongoing efforts to support women entrepreneurs.
He said to date, DBN had disbursed over N187 billion through its Participating Finance Institutions (PFIs) to more than 357,000 women-owned businesses, which now account for 72 per cent of the bank’s beneficiaries, reflecting its unwavering commitment to empowering female entrepreneurs across the nation.
Okpanachi said, “At the Development Bank of Nigeria (DBN), we recognize the critical role that women play in the MSME sector, and we have taken deliberate actions to support their growth and development.
“The We-Fi code is a groundbreaking initiative that brings together stakeholders across the financial sector to systematically address the gender gap in accessing finance.
“As a champion of this code in Nigeria, DBN commits to leading this cause at the highest levels of its engagements. Accordingly, DBN will designate a senior leader internally to drive the initiatives of the code and expand the bank’s efforts to support women entrepreneurs, ensuring that they have access to both financial and non-financial resources crucial for their growth.
“DBN also commits to aligning with the reporting standards of the code by diligently tracking and reporting on the agreed-upon indicators of financing for women-led MSMEs in line with the bank’s mandate.”
Meanwhile, World Bank Country Director for Nigeria, Mr. Ndiamé Diop, described the We-Fi code commitment as a major milestone towards closing the financing gaps for women entrepreneurs.
Represented by the Lead Country Economist, World Bank, Bertine Kamphuis, he said the bank will be pleased to support the efforts.
He said, “We see the We-Fi code and your championship of it as a first step in terms of recognising that to close this gap for finance for women entrepreneurs. We need commitment, not only from the three of you, but from a national coalition of financial service providers to take on the code as well, to start having women gender disaggregated data so that we know where the sectors stand, and then start a process of innovation where solutions will be brought to the table to close that gap.”
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