The Abuja Chamber of Commerce and Industry (ACCI) has urged Nigeria to adopt a clear definition for women-owned businesses to unlock financial access, procurement inclusion, and policy support. Without this, millions of women remain excluded. According to ACCI, a proposed 51% ownership benchmark offers a practical solution to drive inclusive economic growth nationwide. ENE OSHABA writes
In Nigeria’s vibrant entrepreneurial landscape, women are often the unseen architects of progress leading micro-enterprises, creating jobs and sustaining communities. Yet, despite their growing economic footprint, a silent policy gap continues to undercut their potential: Nigeria still lacks a clear, nationally recognised definition of what constitutes a Women-Owned Business (WoB).
According to the Abuja Chamber of Commerce and Industry (ACCI), this absence isn’t just a bureaucratic oversight; it’s a structural barrier that is keeping millions of women entrepreneurs excluded from formal support systems, financial inclusion and equitable access to public procurement.
A policy blind spot with real consequences
The Director-General of ACCI, Agbaidu C. Jideani, stated that, “In boardrooms, markets, farms, and digital spaces, Nigerian women are driving enterprises. But they face significant challenges in accessing finance, securing contracts, or qualifying for government support.
“One of the major reasons for this is that Nigeria does not have a definition for what qualifies as a Women-Owned Business,” he added.
The ripple effects are far-reaching. Without a standardised definition, agencies, banks, and donors have no clear benchmark to determine eligibility. As a result, women either fall through the cracks or become victims of “fronting” where male-owned businesses claim female leadership just to access gender-based incentives.
Lessons from other African economies
Countries like Kenya and South Africa have moved ahead in formalising definitions and integrating women-owned businesses into national procurement systems. Kenya, for instance, mandates that 30% of government procurement be reserved for youth, women, and persons with disabilities.
As contained in the Open Contracting Partnership (2022), women-led enterprises in Nigeria currently receive less than 5% of public contracts, a statistic that ACCI calls “economically unjust and socially unsustainable.”
“Without a formal definition, we cannot accurately collect gender-specific business data, track inclusion, or measure impact. This undermines every well-meaning initiative targeted at women entrepreneurs,” Jideani emphasised.
A new dawn
In a milestone development, the ACCI-backed by the Investment Climate Reform (ICR) Facility and in collaboration with government MDAs, civil society, and women’s business networks facilitated a national dialogue that culminated in a proposed working definition, adopted on May 1, 2025.
According to the definition, a women-owned business is “Any sole proprietorship owned by a woman, or a company or partnership with more than 51 percent female ownership.”
This working definition, modeled after global best practices, also accounts for Nigeria’s local realities. It aims to be verifiable and inclusive, especially for micro and small businesses in rural or informal settings. Importantly, it avoids overly complex certification systems that might exclude those it seeks to empower.
“The 51 percent threshold provides a credible standard while acknowledging practical realities like joint ownership with spouses or capital dilution during fundraising. It’s a pragmatic middle ground that ensures both integrity and inclusion,” said Jideani.
The financial gender gap
The consequences of not having a definition extend into finance. The Central Bank of Nigeria (2024) revealed that women entrepreneurs are 20% more likely to be denied loans compared to men. The World Bank (2023) estimates a $1.5 billion financing gap for women-owned SMEs in Nigeria.
“Financial institutions are unable to develop targeted products for women when there’s no uniform criterion for identifying who qualifies. We’re leaving money on the table,” Jideani added.
This view is backed by a 2023 McKinsey & Company report, which projects that unlocking the full potential of women entrepreneurs could add over $1 trillion to Africa’s GDP by 2030 with Nigeria likely to benefit the most, if decisive policy steps are taken.
Mobilising for national adoption
The ACCI, supported by development partners including the European Union, BMZ (Germany), the British Council, and the Organisation of African, Caribbean and Pacific States, is now calling on the Nigerian government to formally adopt this definition at the national level.
As part of its advocacy, ACCI and the Joint Action Committee will convene a Business Breakfast on June 10, 2025, bringing together policymakers, financial institutions, civil society, and women’s business groups to chart a path toward implementation.
“This is a pivotal moment,” said Jideani. “Adopting a definition is not just a policy formality, it’s a gateway to inclusive economic growth and national prosperity.”
The way forward
Experts agree that defining women-owned businesses is only the first step. What must follow is a coordinated national strategy including the certification and registration mechanisms – through institutions such as the Corporate Affairs Commission (CAC).
Targeted financing and training programmes for verified WoBs. Inclusion in public procurement deals with value chains across sectors and gender-responsive infrastructure like childcare, safe transportation and inclusive marketplaces.
A defining moment
Nigeria stands at a crossroads. With a thriving pool of women entrepreneurs already propelling local economies, the lack of a formal definition continues to hold them back from full economic participation.
But the ACCI warned: “The momentum is building. The only question is whether we will act now or miss yet another opportunity to define what truly matters.”