Kuda Microfinance Bank has increased the total grants for its Kuda For Her Pitch Challenge to ₦10 million, following an overwhelming response from women entrepreneurs in the food and hospitality sectors.
The initiative, launched on March 10 as part of the bank’s Women’s Month activities, was initially designed to award four women-led businesses ₦1 million each. However, after reviewing the volume and quality of submissions, the bank expanded the programme to support ten Lagos-based entrepreneurs with ₦1 million grants each.
The decision reflects a broader funding gap facing women-owned businesses in Nigeria. Data from the Small and Medium Enterprises Development Agency of Nigeria and the National Bureau of Statistics shows that women own about 43 percent of micro and small enterprises in the country, many of them operating within the food and hospitality space. Despite this strong presence, access to finance remains a major constraint, with only around 23 percent of women-led businesses able to secure formal credit.
Insights from Kuda Business’ forthcoming SME Outlook report reinforce this challenge. In a survey of 86 Lagos-based small businesses using its platform, nearly half of respondents identified lack of financing as the biggest barrier to growth, significantly outweighing concerns such as rising operating costs and customer acquisition.
The findings also highlight shifting priorities among small businesses when choosing banking partners. Access to credit ranked highest, followed by the availability of seamless payment tools and lower transaction costs, underscoring the growing need for financial institutions to offer more than just basic banking services.
To fund the expanded grants, Kuda reallocated resources originally set aside for a planned Kuda for Her seminar, opting instead to channel the funds directly into supporting more entrepreneurs.
According to Senior Brand Manager at Kuda, Emmanuel Femi-Adejobi, the quality of applications made it clear that women in these sectors urgently need capital to scale their businesses. He noted that redirecting the seminar budget into additional grants would deliver more immediate and meaningful impact for the entrepreneurs.
The bank is expected to announce the ten grant recipients on March 27, a move that could provide a timely boost for small businesses navigating rising costs and limited access to financing.
For many MSMEs, particularly those led by women, the expansion of this fund highlights a critical reality. While entrepreneurial activity remains strong, sustainable growth will depend heavily on improved access to capital and targeted financial support.
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