WOMEN AND NIGERIA’S DAIRY ECONOMY

Women have long been integral to Nigeria's dairy economy, handling tasks such as milking cattle, processing milk, and selling products in markets. Their contributions are valued, yet many rural women have been excluded from formal financial systems due to a lack of necessary tools. An estimated 25 million women in Nigeria remain unbanked, with 16 million relying on informal financial means.

The gender gap in financial access has widened over time, from about 10% in 2012 to 12% in 2020, with projections suggesting it will remain above 10% through 2027. Financial inclusion is crucial because it expands choice and reduces dependence on costly or unreliable informal lending. Financial inclusion is not merely an end in itself but a means to expand decision-making capabilities, manage resources, and pursue opportunities.

The Advancing Local Dairy Development in Nigeria (ALDDN) program recognized this by integrating financial inclusion into the daily lives of farmer organizations. This allowed women to build financial confidence, exchange knowledge, and establish relationships that supported both economic and social goals. As a result of this program, more than 12,000 formal bank accounts were opened and self-help groups mobilized approximately ₦75 million in cumulative savings.

Financial inclusion is often viewed as a social intervention. However, the evidence suggests that it is also an economic strategy. Women with financial capability strengthen collective action, and stronger collective action supports more efficient markets. The true significance of financial inclusion lies in the decisions it enables, such as investment in enterprises and the ability to absorb shocks without resorting to selling livestock or cutting household consumption. When women prosper, rural economies grow.