Union Bank of Nigeria has said that investing in women through access to loans, financial knowledge, and economic opportunities is not charity but a smart business strategy that can grow businesses, strengthen families, and boost Nigeria’s economy.
According to the bank, the conversation around women’s economic participation should move beyond moral arguments and focus on the clear financial benefits that come from empowering women in business.
“Investing in women is not charity, it is strategy,” the bank stated, explaining that institutions and economies that fail to support women entrepreneurs are leaving significant economic value untapped.
The statement was shared as part of activities marking Women’s Month and preparations for International Women’s Day, with the theme “Give to Gain,” which emphasises the economic and social benefits of supporting women.
Union Bank noted that Nigeria has one of the highest rates of female entrepreneurship in the world, with millions of women already running businesses across different sectors of the economy.
The bank said there are approximately 23 million female entrepreneurs operating in Nigeria’s micro-business segment alone. Women also account for about 41 percent of small and medium-scale enterprise ownership in the country.
SMEs contribute nearly half of Nigeria’s Gross Domestic Product, making them a major driver of economic growth. Despite this, the bank pointed out that women entrepreneurs still face serious barriers when it comes to accessing finance.
According to Union Bank, women receive only about 10 percent of loans provided by financial institutions, while an estimated 98 percent of women entrepreneurs still lack access to formal credit markets.
The bank said this gap represents a major missed opportunity for the Nigerian economy.
“We have millions of women already building, already trading, already employing, and we are funding only a fraction of them,” the bank said.
It added that the real question is no longer whether Nigerian women can run successful businesses but what would happen if they were properly supported with capital, training, and opportunities.
Union Bank referenced global research that shows the strong economic impact of women’s participation in the economy.
A study by the McKinsey Global Institute titled The Power of Parity found that advancing women’s equality could add up to $12 trillion to global GDP.
Similarly, the International Monetary Fund has estimated that equal participation by women in the workforce could increase GDP by as much as 40 percent in some countries.
Drawing from similar data, the Council on Foreign Relations projected that closing the gender gap in economic participation could increase Nigeria’s GDP by about 23 percent.
“These are not aspirational figures,” the bank said. “They are calculations of what we are currently losing by not investing in women.”
Union Bank also highlighted what economists often describe as the “multiplier effect” of investing in women.
Research has shown that women reinvest a larger portion of their income into their families and communities compared to men.
“When a woman’s business grows, school fees get paid, nutrition improves, healthcare is accessed, siblings are supported and employees are hired,” the bank said.
The bank noted that this ripple effect means that supporting women entrepreneurs does not only benefit individual businesses but also improves household welfare and community development.
Union Bank said these outcomes are visible across markets and commercial centres throughout Nigeria.
It cited examples such as women traders in markets like Balogun in Lagos or Onitsha Main Market who support extended families, employ workers, and contribute to local economies.
Each of these women, the bank said, represents a small economic engine capable of creating jobs and supporting several dependants.
Union Bank explained that financial institutions also benefit directly when they support women entrepreneurs.
Women represent a large but underserved market within the financial services sector.
In Nigeria, the bank noted that about 77 percent of working women operate in the informal sector.
This creates a significant opportunity for banks to expand services such as savings products, digital banking, micro-lending, and insurance to millions of women who are currently outside the formal financial system.
Union Bank also pointed to data showing that women are reliable borrowers.
“Multiple studies across emerging markets have shown that women have lower default rates on loans than men,” the bank said.
Because of this, the bank said designing financial products that address women’s needs can help financial institutions grow their customer base while also strengthening the economy.
The International Finance Corporation has also described the women’s market as one of the most significant growth opportunities for financial institutions globally.
Union Bank said that when banks create financial products tailored to women’s realities, they are not just supporting social development but also building sustainable business growth.
The bank explained that women who receive financial support tend to become long-term customers.
“When we invest in a woman’s financial capability, she does not just open an account. She saves, she transacts, she grows, she refers others, and she becomes a lifelong customer,” the bank said.
Union Bank said its commitment to women’s financial empowerment is embedded within its broader business strategy rather than treated as a corporate social responsibility initiative.
The bank highlighted its women-focused banking platform, Alpher, which was launched in 2020 and aligns with the United Nations Sustainable Development Goal 5 on gender equality.
The initiative was designed to support different categories of Nigerian women, including entrepreneurs, professionals, and women managing household finances.
Through the platform, the bank offers financial products such as loans and savings plans tailored to women’s needs.
It also provides capacity-building initiatives including entrepreneurship training, mentorship programmes, and masterclasses on personal finance.
Union Bank said these programmes are important because access to capital alone is not enough.
“Capital without knowledge produces fragile outcomes,” the bank said.
The bank added that mentorship also plays an important role in helping women grow professionally and build sustainable businesses.
“A single conversation with the right mentor at the right time can redirect an entire career,” the bank stated.
Union Bank emphasised that empowering women economically benefits both society and the financial sector.
The bank said expanding women’s access to finance, skills, and opportunities can unlock major economic gains for Nigeria while also creating a more inclusive financial system.
“The question has never been whether investing in women is good business,” the bank said. “It has always been good business.”
