For millions of Nigerian women, economic independence is crucial for stronger families and national development. However, access to capital remains a significant barrier. The VSLA model offers a proven solution, as seen in the experience of the Federation of Muslim Women’s Associations in Nigeria (FOMWAN) in Bauchi State. By mobilizing their own resources, women can generate, manage, and grow financial resources collectively.
Between 2019 and 2024, FOMWAN implemented the WORTH Village Savings and Loan strategy under the Women’s Voice and Leadership Project, funded by Global Affairs Canada through ActionAid Nigeria. By 2024, 1,543 women had been mobilized into 73 savings groups and 31 Village Savings and Loan Funds, registered as cooperatives. Collectively, they saved, loaned, and shared over ₦75 million, demonstrating their ability to access credit, invest in small enterprises, and repay loans.
The VSLA model’s strongest feature is ownership, as women save their own money, agree on rules, determine loans, keep records, repay what they borrow, and share returns. This process builds confidence, accountability, and decision-making capacity. Economic independence enables women to contribute to household decisions, pay school fees, expand businesses, or respond to emergencies without relying on others.
Under the WORTH strategy, savings and lending were combined with literacy training. Two hundred and forty-nine women graduated from literacy classes, with many progressing to post-literacy programs. Certification by the Bauchi State Agency for Mass Education demonstrated how community interventions can connect with public institutions, making literacy an economic tool for women to participate confidently in economic activities.
The impact of the project was evident even after it ended. In Dass Local Government Area, women collectively financed a rice-processing facility generating about ₦15 million per production cycle. In Tafawa Balewa, the Village Savings and Loan Fund disbursed about ₦1.25 million in loans monthly, with annual savings exceeding ₦80 million per cycle. This sustainability beyond donor-funded projects shows that women can become investors, borrowers, business owners, and economic leaders.
Efforts are underway to replicate and scale the VSLA model across Nigeria through the Renewed Women’s Voice and Leadership Nigeria (RWVL-N) Project, funded by Global Affairs Canada and ActionAid Nigeria. The goal is to support women-led organizations in establishing sustainable structures for saving, borrowing, and enterprise development, particularly where women-owned businesses play important roles in local economies but face challenges in accessing affordable finance and financial literacy.
When women control financial resources, businesses grow, household incomes become more resilient, and children benefit from greater investment in education and nutrition. The long-term measure of success is not the number of groups established or the amount saved, but how many women gain greater control over their economic lives. The story from Bauchi shows that women who began by saving modest amounts collectively mobilized millions, accessed credit, established businesses, supported families, and invested in communities.
Key points
- The VSLA model empowers women economically by providing access to capital and financial literacy.
- Women’s economic independence fosters stronger families and inclusive national development.
- Scaling the VSLA model can contribute to a national movement where Nigerian women shape the economy.
