Nigeria’s Affirmative Procurement: Empowering Women in Business

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Nigeria is seeking to make public procurement a more effective instrument of women’s economic empowerment, using government contracts to expand opportunities for businesses that have historically faced barriers to public-sector markets. The principle is straightforward: public spending should not only deliver goods and services but also create opportunities for capable businesses to compete, grow and generate jobs.

 

The Federal Government’s National Policy on Affirmative Procurement seeks to improve access to designated government contracts for women-owned businesses, young entrepreneurs, persons with disabilities and other disadvantaged groups. The Bureau of Public Procurement (BPP) has clarified that the initiative activates preference provisions under the Public Procurement Act 2007 rather than creating an entirely new law. The proposed framework includes reserved contract opportunities, preferential bid evaluation, subcontracting arrangements and joint bidding to help smaller businesses compete.

 

READ ALSO: Women Entrepreneurs in Africa: Ecobank’s $2.6 Billion Game-Changing Commitment

 

The economic case is compelling. Women-owned enterprises contribute to Nigeria’s business landscape, yet many face difficulties accessing finance, meeting tender requirements and navigating public procurement procedures. The World Bank’s Women, Business and the Law 2024 report found that only about one in five economies worldwide had gender-sensitive provisions in public procurement legislation. Addressing these barriers could help women-owned businesses access a market that remains largely beyond their reach.

 

Implementation will determine whether the policy delivers meaningful change. Women entrepreneurs often encounter complicated bidding documents, demanding certification requirements, limited information about tenders and delayed payments. Smaller firms may lack the audited accounts, working capital and administrative capacity required to satisfy procurement conditions, even when they can deliver the goods or services.

 

Nigeria’s collaboration with the International Trade Centre and the Republic of Korea’s Public Procurement Service, announced in February 2026, offers an opportunity to strengthen procurement officers’ capacity and improve implementation. Digital procurement systems, accessible tender information and practical support for smaller enterprises could make participation more transparent and competitive.

 

Kaduna State provides a domestic example. Its Gender-Responsive Public Procurement Policy reserves 20 per cent of goods contracts, 10 per cent of consulting contracts and 5 per cent of works contracts for women-owned businesses. The state has also reduced certain registration and tender fees, addressing some of the financial barriers that prevent smaller enterprises from bidding. Its experience offers lessons for wider adoption, although results will depend on enforcement and the quality of implementation.

 

Accountability must remain central. Ownership requirements should establish that eligible businesses are genuinely owned and controlled by the intended beneficiaries, preventing front companies from exploiting the policy. Authorities must also guard against token subcontracting, in which women-owned businesses appear in bids but receive little meaningful work.

 

Payment practices are equally important. Winning a government contract is not enough if a small business must wait months to receive payment. Clear payment deadlines, invoice tracking and public reporting on outstanding obligations would help protect suppliers from cash-flow pressures that can threaten their survival.

 

Measurement must go beyond counting contracts. The government should publish both the number and total value of awards made to eligible businesses, alongside information on completed projects, actual subcontractor payments and payment timelines. Results should also be disaggregated by business ownership, sector and location to reveal whether opportunities are reaching a broad range of enterprises.

 

Nigeria’s affirmative procurement policy could become an important instrument for inclusive economic growth. Its success, however, will depend on whether women-owned businesses can secure meaningful contracts, deliver successfully, receive payment on time and use their public-sector experience to compete in wider markets.

 

For Africa, the broader lesson is that economic empowerment requires more than encouraging women to start businesses. It also requires opening markets, removing avoidable barriers and ensuring that public spending creates opportunities for capable enterprises to grow.

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