United Bank for Africa’s N5 billion loan facility from the Bank of Industry creates Nigeria’s largest dedicated funding pool for women-owned enterprises, potentially impacting 50,000 female entrepreneurs across key economic sectors.
The facility, offering loans at 9% interest rates with three-year tenors, targets green energy, education, healthcare, and women-owned businesses – sectors that collectively employ 12 million Nigerians and contribute 23% to GDP. Maximum loan amounts of N5 million per beneficiary, with three-month moratorium periods, provide businesses adequate time for revenue generation.
Economic analysts project this initiative could increase women’s participation in formal business sectors by 35%, addressing the current gap where only 23% of registered businesses have female ownership. The program’s structure removes traditional collateral barriers that historically excluded women from accessing commercial credit.
“MSMEs represent the livewire of our developing economy,” emphasized Oliver Alawuba, UBA Group Managing Director. “This facility removes traditional barriers hindering SME growth while providing affordable financing for sustainable business expansion.”
Government data indicates women-owned businesses show 15% higher loan repayment rates than male-owned counterparts, making this targeted approach both socially impactful and financially sound. The initiative aligns with Nigeria’s financial inclusion targets of reaching 95% adult population by 2024.
The green energy focus addresses Nigeria’s renewable energy transition goals, where current capacity stands at 2,000 megawatts with potential for 40,000 megawatts. Healthcare and education sectors, traditional areas of female enterprise, receive prioritized funding recognition.
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