CBN Sets Aside N252bn for Women-owned Businesses

About N252bn has been set aside by the Central Bank of Nigeria as credit to support businesses owned by women in the country. The Central Bank of Nigeria said the facility was dedicated to Small and Medium -Scale enterprises, noting that it would increase access to credit and reduce the high cost of funds for women -owned businesses across the country.

The Deputy Governor, Economic Policy, CBN, Dr Sarah Alade, explained that the banks decided to set aside the funds after observing that lack of access to finance was the obstacle to women participation in economic activities in the country.

Alade who spoke at a conference on Women in Management and Leadership organised by the Nigerian Institute of Management in Abuja on Wednesday, stated that of the N420bn credit facility for SMEs in the country, 60 per cent had been set aside for businesses owned by women.

She said"The CBN has used dedicated SME funds to deepen and increase access to credit and reduce the high cost of funds for women -owned businesses.Some of these programmes include the N200bn Small and Medium Enterprises Credit Guarantee Scheme and N220bn Micro Small and Medium Enterprises Fund, with 60 per cent earmarked for women -owned businesses.

The objectives of these funds are to increase the level of access to credit by SMEs and manufacturers by providing guarantee for bank's credit,increase output,generate employment,diversify the revenue base,increase foreign exchange earnings and provide inputs for the industrial sector on a sustainable basis".

Alade,who was represented by the Director of Finance,CBN, Tope Omoge,said the bank had also  adopted a financially inclusion strategy capable of reducing the financial exclusion of women to about 20 per cent in 2020.

According to her,it has been established that financial exclusion can lead to social exclusion and reduced growth.

Alade said,"This is the reason why the CBN is keen on empowering the small business sector as a way of promoting women participation through financial inclusion".

In his address,the present NIM,Dr Nelson Uwaga,stated that there was an urgent need to harness and unleash the potential of women towards leadership, innovation and entrepreneurship in order to break the ceiling for them to aspire and become better achievers.

"In today's evolving business environment, every female manager or leader must be prepared to explore her leadership and innovate    potential needed to take her and the organization to the next level.She must also be ready to lead her organization or enterprise through periods of disruptive innovation and rapid change",he said.