Promoting Gender Equality and Enterprise Formalization in Nigeria – Constituents agree on the methodologies of two project studies

Between June and July 2022, ILO-Abuja held two consultation workshops in Lagos and Abuja, Nigeria, in partnership with the Nigeria Employers’ Consultative Association (NECA). The purpose of the workshops was to present and discuss with constituents the methodologies of two assessments to be carried out under the 20-month project Promoting Gender Equality and Formalization through Women’s Entrepreneurship Development in Lagos and River states. Based on the assessments, the project aims to support key actors in the business ecosystem to adopt approaches and policies that respond to the needs of women entrepreneurs in Nigeria, with a focus on those active in the informal economy.

Article | 27 September 2022
Tripartite constituents convened in Lagos, Nigeria to agree on the objectives and methodologies of two assessments undertaken within the project.Tripartite constituents convened in Lagos, Nigeria to agree on the objectives and methodologies of two assessments undertaken within the project.22, ILO-Abuja held two consultation workshops in Lagos and Abuja, Nigeria, in partnership with the Nigeria Employers’ Consultative Association (NECA). The purpose of the workshops was to present and discuss with constituents the methodologies of two assessments to be carried out under the 20-month project Promoting Gender Equality and Formalization through Women’s Entrepreneurship Development in Lagos and River states. Based on the assessments, the project aims to support key actors in the business ecosystem to adopt approaches and policies that respond to the needs of women entrepreneurs in Nigeria, with a focus on those active in the informal economy.

• The Women’s Entrepreneurship Development (WED) assessment, analyzes six key framework conditions that support an enabling environment for women’s entrepreneurship in Nigeria and seeks to identify targeted measures to improve the ecosystem for WED. The conditions include rules and regulations, policy coordination and leadership, access to finance, access to business development services, access to markets and ICTs and voice and representation of women entrepreneurs in policy dialogues.

• The enterprise formalization assessment is undertaken to identify barriers and opportunities to formalize women-led small economic units and their workers in Lagos and Rivers States.
The assessments are complementary and will highlight key legal, policy and procedural dimensions to promote women’s entrepreneurship and the formalization of their enterprises.

What issues does the project aim to tackle?

The overall objective of this intervention is to support key actors in the business ecosystem to adopt approaches and policies that respond to the needs of women entrepreneurs in Nigeria, including in the informal economy. 95.1 percent of employed women are in informal employment in Nigeria, compared to 90.8 per cent of employed men. Although the proportion of women involved in entrepreneurship in Nigeria exceeds that of men, gender inequality remains high in the country. Women working in the informal sector are more prone to experience decent work deficits related to starting and running a business, as well as obtaining access to finance. However, the traditional gender roles, as well as responsibilities of childcare and household duties, limit the available time and opportunities that women have to participate in formal employment or run a formal business. Furthermore, as most women are in informal employment, they are often outside the scope of policies and programmes that support micro, small and medium-sized enterprises and provide health insurance or other forms of social security. These barriers have been exacerbated by the COVID-19 pandemic.

To address these challenges, the project will seek to:

1) Support Government and social partners to address the barriers for women’s entrepreneurship development and the formalization of their enterprises.

2) Strengthen the capacity of Government and other actors to expand their actions on women’s entrepreneurship development (WED) and enterprise formalization, focusing on the legal and policy framework, monitoring mechanisms for learning, advocacy efforts and direct support to women entrepreneurs;

3) Support The Nigeria Employers’ Consultative Association (NECA) to adopt gender-responsive measures that better target and serve women entrepreneurs, while widening the association’s representation.

What do constituents say about the project?

“I thank the ILO for its commitment to women entrepreneurship development in Nigeria and call on participants to join hands with all actors to contribute positively to WED in Nigeria” – Ms. Celine Oni, ag Director-General NECA

The Secretary General of the Federation of Informal Workers Organization of Nigeria Dr Gbenga Komolafe opined: “I am happy with the initiators this project because it will help our members to be more informed, organize better to protect and grow their businesses’’.

Participants of the workshops included Federal Ministry of Labour and Employment, Ministry of Women Affairs, Small and Medium Enterprises Development Agency (SMEDAN), National Industrial Safety Council of Nigeria, the Trade Union Congress of Nigeria, the Nigerian Labour Congress, NECA’s Network of Entrepreneurial Women (NNEW) and the Federation of Informal Workers Organisation of Nigeria.

The workshops were organized by the ILO Country Office in Abuja in collaboration with the DWT in Dakar and the SME unit

A representative of Street Vendors asks a question during the consultations held in Abuja, Nigeria in July 2022.
What is next?

After validation of the assessments, an action plan will be developed to support partners to address the identified gaps, promote women’s entrepreneurship and support them in formalizing their enterprises. Removing critical gender-related barriers faced by women entrepreneurs will support them to create sustainable businesses in the formal economy. This fits within the ILO’s ambition to improve income security, business resilience and decent work among women entrepreneurs.