Nigeria’s development and merchant banks, FSDH Merchant Bank (FSDH) and the Bank of Industry (BOI), have urged women-led businesses to prioritise meeting key criteria to secure financing, warning that simply being a female-owned enterprise does not guarantee access to credit.
The institutions emphasised that the main obstacles are poor business structures, unclear operational plans, and inadequate financial records, rather than a lack of available funds.
The warning came during the 2025 Women in Business (WIBIZ) Summit hosted by FSDH in Lagos, where speakers outlined expectations for women seeking loans, particularly in the creative sector.
The Group Head of Brand Transformation and Digital Marketing at BOI, Jide Sipe stressed that lenders now prioritise readiness over enthusiasm when assessing loan requests.
“Loan facilities are not free money. Funding isn’t just about access; it’s about readiness,” Sipe said.
He explained that fundable women-led businesses must demonstrate industry knowledge, mastery of financials, and clear business plans, noting that vague or incomplete proposals are often rejected.
Sipe added that many entrepreneurs mistakenly approach banks for sponsorship rather than credit, reflecting a lack of understanding of institutional lending.
He recommended partnerships or co-founder arrangements to strengthen governance and reduce default risks, highlighting poor cash flow management as a common cause of business debt crises.
FSDH highlighted targeted financing options for women, including guaranteed loans, Creative Industry Funds, the IDICE programme, state-backed matching funds, and SME-focused products supported by institutions like the IFC, AfDB, and World Bank.
Bukola Smith, Managing Director of FSDH, advised entrepreneurs to carefully research and align their loan requests with the appropriate product, stressing that misaligned applications are a leading reason for rejection.
FSDH also announced that over N3 billion has been deployed in women-focused financing over five years, over 500 women-led SMEs have been trained, and 2,000 women supported through coaching and accelerator programmes.
The bank is implementing reforms to remove structural barriers and expand access to concessionary loans, including a N1 billion BOI-backed pool, in collaboration with the IFC to support technology-driven women entrepreneurs.
The banks urged women-led enterprises to leverage gender-targeted financing under the WIBIZ framework to grow and scale their businesses successfully.