Women-owned businesses in Nigeria are better at repaying loans than their male counterparts, according to new data from Moniepoint.

In its 2025 Impact Report, the fintech said the default rate among women-owned businesses in its loan portfolio was 2.5 times lower than that of male-owned businesses, despite women continuing to face greater barriers to accessing formal credit.

The report also showed that lending to women-owned businesses grew by more than 300% during the year, while 62% of surveyed female entrepreneurs said the facility was the first formal business loan they had ever received.

The findings suggest that women entrepreneurs, who have often struggled to secure financing because of collateral requirements and limited formal credit histories, may represent one of the strongest-performing segments of Nigeria’s SME lending market.

According to Moniepoint, women accounted for 36% of loans disbursed through its platform, exceeding the 15% to 25% industry benchmark cited in the report.

Despite receiving a smaller share of loans, women-owned businesses recorded stronger repayment performance than their male counterparts.

“We found that the default rate for women was 2.5 times lower than for men. This is definitive evidence that lending to women-owned businesses is sound financial practice,” the report asserted.

The report argues that alternative credit assessment models are helping expand access to finance for entrepreneurs who have traditionally been excluded from the formal banking system, particularly women-owned businesses operating in Nigeria’s informal economy.

Moniepoint also noted that women-owned businesses account for roughly 33% of Nigeria’s MSMEs, yet continue to face significant financing constraints.

Citing EFInA data, the report said only 45% of Nigerian women have access to financial services compared with 56% of men, highlighting the persistent gender gap in financial inclusion.

Moniepoint’s findings are consistent with previous lending data published by other financial institutions.

Credit Direct’s 2025 Nigeria Credit Landscape Report, which analysed approximately 300,000 active borrowers, found that women received just 26% of all loans disbursed despite recording a 7.8% delinquency rate.

This is significantly lower than the 10.9% recorded among male borrowers.

The report also showed that women took slightly larger average loan amounts than men.

“Despite representing only 26% of total borrowers, women repaid their loans better, indicating that their larger loan amounts do not mean greater credit risk,” the report said.

The consistency across lending portfolios suggests that lower default rates among women borrowers may reflect a broader trend within Nigeria’s credit market rather than the experience of a single lender.

The findings also align with international research referenced by development finance institutions such as the International Finance Corporation (IFC), which has consistently highlighted the financing gap facing women-owned MSMEs despite evidence that they often demonstrate strong repayment performance.

The findings come amid wider efforts to close the financing gap facing women-owned businesses in Nigeria.

Earlier this year, Nairametrics reported that the African Development Bank Group (AfDB) has approved a $61 million financing package for the Development Bank of Nigeria (DBN) to boost access to affordable credit for women-owned and women-led micro, small and medium enterprises (MSMEs) in Nigeria.

The AfDB disclosed this in a statement published on its website.

It noted that the facility is designed to address persistent financing challenges faced by women entrepreneurs and promote more inclusive private sector growth in Nigeria.