Women-owned businesses default 2.5 times less than men, Moniepoint report shows

Women entrepreneurs in Nigeria repay loans far more reliably than men, with default rates 2.5 times lower, according to Moniepoint's 2025 Impact Report. The fintech company also recorded a 300% increase in lending to women in 2025, even as female borrowers still receive a smaller share of total credit.

Loan performance and access gap

Moniepoint found that women accounted for 36% of loans on its platform, well above the industry average of 15% to 25%. Yet their default rate was 2.5 times lower than that of male borrowers. The company stated: '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.'

Despite their reliability, 62% of the women surveyed said the loan they received was the first formal business loan they had ever taken. Lending to women on the platform grew by more than 300% in 2025. Moniepoint attributed part of this growth to alternative credit assessment models that help evaluate entrepreneurs without conventional collateral or extensive banking records.

Women still underserved in Nigeria's credit market

Women-owned businesses make up roughly 33% of Nigeria's micro, small and medium-sized enterprises, but financing barriers have historically kept many outside the formal credit system. Data from Enhancing Financial Innovation and Access showed that only 45% of Nigerian women have access to financial services, compared with 56% of men. Moniepoint argued that this gap was holding back both financial inclusion and the overall quality of lending portfolios in the country.

A separate report by Credit Direct, based on data from about 300,000 active borrowers, echoed the findings. Women received just 26% of all loans disbursed but posted a delinquency rate of 7.8% against 10.9% for male borrowers. Women also borrowed more on average, receiving N478,117 per loan compared with N430,962 for men. Among married borrowers, women similarly secured larger loans while maintaining lower default rates. Credit Direct said: 'Despite representing only 26% of total borrowers, women repaid their loans better, indicating that their larger loan amounts do not mean greater credit risk.'

What this means for Nigerian consumers and the economy

The Credit Direct report also revealed that many Nigerians are now turning to credit to cover everyday costs rather than grow their businesses. Rent, school fees and medical bills were the most common reasons cited for borrowing, and nine in ten borrowers earned below N200,000 monthly. That points to a lending landscape shaped as much by economic hardship as by entrepreneurial ambition. For the naira and consumers, the findings suggest that improving women's access to credit could strengthen loan repayment culture, reduce default risks for lenders, and support more stable credit markets in a period when many households are borrowing just to survive.