By Ebunoluwa Sessou

Over 133 million Nigerians have been trapped in multidimensional poverty as a result of COVID-19 pandemic which has widened the country’s wealth-gender gap.

The consequences of the COVID-19 pandemic were unprecedented around the world with millions of workers losing their jobs while certain industries were completely shut down. The economic growth and GDPs of countries around the globe was negatively impacted through the weakening and disruption of their productive capacities.

The negative effects of COVID-19 were universal in nature as women and women-owned businesses were disproportionately affected by the pandemic.

In Nigeria, the aftermath of the pandemic left women grappling with depleted incomes and the rising costs of living as more women were unable to sustain their businesses, particularly those in the informal sector.

Many of these women were particularly unable to access government palliatives and relief packages for small businesses as they lacked information on how to access palliative support from both public and private sectors.

In view of this, the Nigeria Chapter of the New Faces New Voices, NFNV-Nigeria, launched the Women in Leadership and Financial Inclusion, WLFI, Project, to ensure inclusive economic recovery from the devastating effects of COVID-19.

In response to the crippling effects of COVID-19 on women and women-owned businesses in Nigeria that the NFNV- Nigeria, a pan-African women in finance network under the Graça Machel Trust, GMT, in 2022 implemented the Women in Leadership and Financial Inclusion, WLFI, Project, to focus on enhancing the financial inclusion of women in Nano, Micro, Small and Medium Enterprises, NMSMES.

Speaking on the effect of the COVID-19 pandemic on women and their businesses, the Country Director of NFVN-Nigeria/ Project Director for WLFI Mrs. Aishatu Aminu disclosed the project was launched to examine the inclusiveness of government’s financial policies, programmes and interventions aimed at mitigating the impact of the pandemic on women-owned businesses.

Adding that, it was an avenue to analyse government policies and programmes aimed at promoting inclusive digitalization; seeks a gender-inclusive post COVID-19 recovery efforts as well as exploring various financing opportunities for women entrepreneurs across formal and informal sectors to take advantage of starting businesses and boost their enterprises in the post-COVID-19.

According to her, closing Nigeria’s wealth-gender gap is not just a moral imperative but a strategic necessity for the nation’s economic growth and development.

“In 2022, the NFNV-WLFI Project hosted a series of workshops for women entrepreneurs in Kano, Abuja and Lagos focused on creating awareness about the various financing opportunities available for women entrepreneurs across formal and informal sectors”, she said.

In his contribution, Alhaji Shehu Muhammed, the Sarkin Shanu of Kanowho is also the NFNV-Nigeria Patron emphasized that for women’s financial inclusion should be enhanced in Nigeria, adding that, women must seek to occupy key decision and policymaking positions in the country, in which capacity they can effectively promote women’s financial empowerment.

He lamented that currently men have dominated such positions to the disadvantage of women’s financial empowerment.

“I encourage women to become actively involved in politics so as to bridge the gender gap in decision making in the country; gender-related financial inclusion will be greatly enhanced if women are in key decision-making roles, adding that women’s financial inclusion would immensely benefit society both economically and socially”, he said.

He described low-income rates, lack of education, socio-cultural norms, as well as lack of awareness about financial services among women in northern Nigeria as major barriers to women’s access to finance and their economic empowerment.

He noted that if these impediments were meaningfully mitigated, access to financing would be greatly enhanced among women in northern Nigeria.

In her reaction, Director of programs at the Graca Machel Trust, GMT, Shiphra Chisha, said African women were predominantly drivers of economic and social development, yet they continue to grapple with complex challenges.

Citing a 2019 study by the Central Bank of Nigeria (CBN), which showed that financial exclusion stands at 36 percent among women and 24percent among men in Nigeria, Chisha noted that the CBN report highlighted the relative gender gap in relation to financial inclusion which stands at 20-30percent, placing Nigeria below its peers.

The NFNV Nigeria recently hosted a national roundtable themed, “Closing the Wealth Gender Gap: Strategies for Achieving Economic Inclusion,” as part of activities under Phase II of WLFI Project. The roundtable examined the financial hurdles to cross in order to close the wealth-gender gap in Nigeria and evaluated policies and initiatives necessary for closing the wealth-gender gap in the country as well as the ecosystem necessary for gender-sensitive public and private policies towards achieving SDGs 5 (Gender Equality) and 8 (Decent Work and Economic Growth) in Nigeria.

While delivering the keynote address at the roundtable, Ms Aishah Ahmad, CBN’s Deputy Governor for Financial System Stability (represented), said a lack of savings and knowledge of banking systems had led to numerous losses by women during the Covid-19 pandemic, adding that although Covid-19 forced many women to adopt banking, the fact that they lacked basic financial literacy made them vulnerable to fraudsters.

Ms Ahmad said the Sub-Saharan African region ranks 6th among the world’s 8 regions with a 68.2% score on the recent gender gap index, ranking slightly below the global average of 68.3%, while Nigeria scored 63.7%, dropping by 0.002% points, compared to the preceding year. She applauded the NFNV Nigeria’s efforts in promoting equitable economic inclusion through the WLFI project.

“There is plenty of evidence and research that provides the justification for expanding women’s financial access and economic participation. There is also evidence of a lower risk profile for female businesses, as several studies have shown that there is a lower default rate and a higher deposit coverage rate for loans made to women. Moreover, women are more likely to invest a significant proportion of their earnings in the development of their families and communities,” the CBN chief said.

Ms Ahmad said the CBN was working through the NFIS to foster financial inclusion and address the gender gaps in access to finance, noting that the imperative for enhancing Nigeria’s wealth-gender gap included improving account opening measures for women, financial and digital literacy, as well as improving access to digital financial solutions.

The highpoints of the WLFI national roundtable were the launch of a series of policy documents and research reports by dignitaries at the event. Among others, the documents launched included a Public and Private Procurement Policy; Gender

Mainstreaming Toolkit, by Ms Ngover Ihyembe-Nwankwo, Executive Director for Business Development at Nigeria Inter-Bank Settlement Systems (NIBSS).

Others were documents related to GMT’s Expert Leaders Group (ELG) on Women’s Financial Inclusion, a network of past and present African Female Deputy Governors of Central Banks, by Ms Aishah Ahmad, the CBN’s Deputy Governor for Financial System Stability; the NFNV-Nigeria Accountability Tracker, by Ms. Cecilia Akintomide as well as a Research and 2 Reports, by Alhaji Garba Abubakar, then Registrar-General, Corporate Affairs Commission (CAC).