How Nigerian Loan Providers Marginalize Women

Young women, like most women in Nigeria, struggle to access credit. Expanding financial equity will require simpler systems, cultural change and support for women to take informed financial risks and build economic power. 

In a 2004 paper, Ugandan academic and activist, Silvia Tamale, aptly described the nature of gender disparity in access to resources. According to Tamale, ‘women’s access to resources is like their access to political fora, severely curtailed, thus calling into question the notion that women are full citizens.’  

In March 2025, the ratio of male to female applicants for the Nigerian Education Loan Fund (NELFUND) student loans was 4:1 in favour of male students. This gap is stark: while male students outnumber female students in some tertiary institutions, the ratio is approximately 1.25:1. For instance, according to the National Bureau of Statistics, in the 2020/2021 academic session, female students accounted for 44.49 per cent of total enrolments in Nigerian universities. As an initiative of the federal government of Nigeria, NELFUND was established to provide interest-free loans and skill development opportunities to students in Nigerian tertiary institutions. According to its mandate, the primary benefits of this credit facility are to reduce the financial burden on students and their families and to promote equal access to higher education for all eligible candidates.  

Even as a lecturer, I had been unaware of the details of the NELFUND application process, though I occasionally came across a little information about the scheme online. More recently, I took the opportunity to have a proper conversation with a university lecturer, who had been tasked with overseeing applications and disbursements. When I asked him what he thought accounted for the gender disparity, he burst into a deep belly laugh. ‘You women,’ he said, ‘you’re scared of debt. However, the guys somehow believe they can get away without ever repaying what they borrow.’ His response, though flippant, echoes findings in behavioural studies. In 2022, researchers, Caroline Perrin and Laurent Weill, found that women tend to be more risk-averse, while men are generally overly confident about borrowing but less reliable about repayment.  

Still, I knew that the reasons women are held back from accessing credit were far more complex than just a fear of debt. It is important to emphasize that access to credit isn’t a challenge limited to student loans. As of 2024, only about six per cent of Nigerian women had access to any form of credit facility. In the micro, small and medium enterprises (MSME) sector, for example, it was estimated that the credit access disparity favouring men exceeds $158 billion. Thus, it is imperative to truly unpack the extent to which access to credit has been unequal and to examine the drivers and effects of this disparity. Only through this can there be a targeted approach that accommodates women’s economic needs and access to finance...