Nigeria’s ambition to build a $1 trillion economy by 2030 may face significant constraints unless women-led businesses are moved from the periphery of economic activity to the centre of national growth, according to industry stakeholders.
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Experts say that while Nigeria has one of the most vibrant entrepreneurial ecosystems globally, a large portion of its economic potential remains underutilised due to structural barriers affecting women-owned enterprises, particularly across the micro, small and medium enterprises (MSMEs) segment.
Data from the National Bureau of Statistics (NBS) shows that women account for an increasing share of MSME ownership in Nigeria, underscoring their expanding role in enterprise development and grassroots economic activity. This shift reflects broader trends in informal and semi-formal business creation, where women dominate sectors such as retail, fashion, food processing and home-based services.
Despite this progress, analysts argue that most women-led businesses remain concentrated at subsistence level, limiting their contribution to national output. As a result, repositioning these enterprises for scale has become a key requirement for achieving Nigeria’s long-term economic targets.
Speaking on the issue, Gloria Onosode, Director of Enterprise Sales at FairMoney Business, emphasised the need to transition women entrepreneurs into central players within the economy rather than peripheral contributors.
“Nigeria is targeting a $1 trillion economy by 2030. To achieve this, women-led businesses must transition from mere passive observers to primary growth drivers at the heart of the economy and strategic participants in their respective industries,” she said.
Onosode noted that digital empowerment must no longer be framed as a social or gender-based initiative but as a core economic strategy. According to her, integrating women-owned enterprises into the digital economy will enable them to expand beyond local markets, improve efficiency and access structured financial services.
Industry observers highlight that one of the most immediate pathways to scaling women-led businesses lies in digital adoption. For example, a fashion entrepreneur in Aba can leverage e-commerce platforms and digital payment systems to reach customers across Nigeria and international markets, thereby increasing revenue potential and operational reach.
Digital tools also play a critical role in improving financial management. Proper record-keeping, transaction tracking and data-driven decision-making can enhance business credibility and improve access to credit facilities from formal financial institutions.
Financial service providers have begun responding to this need. Onosode disclosed that FairMoney Microfinance Bank has introduced financial products tailored to help small businesses transition from informal financial practices to structured digital systems.
These solutions include digital savings platforms that allow entrepreneurs to move away from informal cash storage methods and into interest-bearing financial products. By encouraging disciplined savings behaviour, such platforms support business continuity and capital accumulation.
For many women entrepreneurs, business income is often inconsistent due to seasonal demand fluctuations and competing family responsibilities. As a result, financial resilience remains a critical factor in sustaining operations.
Flexible savings products now allow business owners to earn interest while retaining access to funds for urgent operational needs, such as restocking inventory or addressing unexpected expenses. Fixed-term savings options, on the other hand, enable entrepreneurs to set aside capital for long-term investments, including equipment purchases and business expansion.
Experts say that the adoption of these tools can significantly improve financial planning among women-led SMEs and enhance their ability to scale sustainably over time.
Nigeria’s entrepreneurial strength is further reflected in data from the Small and Medium Enterprise Development Agency of Nigeria (SMEDAN), which estimates that the country has approximately 39.6 million nano, micro, small and medium enterprises.
In 2024, SMEDAN Director-General Charles Odii revealed that about 72 per cent of these businesses are owned or led by women, marking a sharp increase from previous estimates of between 40 and 43 per cent. Analysts attribute this rise largely to the growth of nano and home-based businesses, many of which are operated by women seeking flexible income opportunities.
These enterprises play a vital role in job creation and community stability, particularly in low-income and underserved areas. However, their limited access to capital and formal markets continues to restrict their growth potential.
Access to finance remains one of the most significant barriers facing women entrepreneurs. According to the International Finance Corporation (IFC), Nigeria has one of the highest rates of female entrepreneurship globally, yet women-owned businesses face a credit gap exceeding N2.9 trillion under its Nigeria2Equal initiative.
This financing gap forces many women to rely on personal savings or informal funding sources, which are often insufficient for scaling operations. Without access to affordable credit, business expansion, hiring and innovation remain constrained.
Stakeholders argue that closing this gap is critical not only for gender inclusion but also for broader economic growth. Research indicates that women reinvest up to 90 per cent of their income into their families and communities, particularly in education, healthcare and nutrition.
This reinvestment pattern creates a multiplier effect that strengthens human capital development and improves long-term economic outcomes. As a result, empowering women entrepreneurs is increasingly seen as a strategic economic imperative rather than a social intervention.
In addition, formalising more women-led businesses could enhance economic planning by improving the availability of reliable data. Greater visibility into business activities allows policymakers and financial institutions to design targeted interventions and allocate resources more effectively.
Analysts note that when women-led SMEs transition into the formal economy and scale their operations, the benefits extend beyond individual businesses. Increased employment, higher household incomes and improved community resilience contribute to overall economic stability.
For Nigeria, achieving a $1 trillion economy will require unlocking all available growth drivers, including the vast but underutilised potential of women entrepreneurs.
Onosode reiterated that bridging the digital divide and expanding access to financial tools such as savings and credit will be critical to this transformation.
“The future of the Nigerian economy is intrinsically tied to the success of its women. When we prioritise women-led businesses, we are not merely fulfilling a gender quota—we are unlocking economic potential across sectors,” she said.
She added that while the $1 trillion target may appear ambitious, it remains achievable if Nigeria fully harnesses the resilience, creativity and entrepreneurial capacity of its women-led enterprises.
