Digital Microfinance and Women’s Economic Empowerment: Evidence from Urban Market Cooperatives in Lagos

African Journal of Gender and Women Studies | Vol. 11, No. 1, January 2026 | pp. 1–8
DOI: 10.46882/2026/AJGWS/000101

Research Article

Digital Microfinance and Women’s Economic Empowerment: Evidence from Urban Market Cooperatives in Lagos

Amina Bello¹, Chidinma Okafor²

¹Department of Economics, University of Lagos, Lagos, Nigeria
²Department of Sociology, Covenant University, Ota, Nigeria

Abstract: This study investigates the impact of digital microfinance platforms on the economic autonomy of female market traders in urban Nigeria. Despite rapid fintech growth, structural barriers often limit low-income women from scaling their enterprises. Utilizing a mixed-methods design, we surveyed 450 female cooperative members and conducted 30 in-depth interviews across three major commercial hubs in Lagos. Statistical analysis using a multiple regression model reveals a positive correlation between mobile credit access and monthly business revenue, with a mean increase of 32.5 percent (p < 0.01). However, qualitative findings highlight persistent challenges, including high interest rates, digital literacy gaps, and coercive loan recovery tactics by unregulated apps. The results demonstrate that while digital microfinance enhances immediate cash-flow liquidity, long-term empowerment remains constrained without targeted digital skills training and gender-responsive regulatory frameworks. Policymakers must mandate transparent pricing models and foster cooperative-led digital platforms to ensure inclusive financial growth.

Keywords: Digital microfinance, women empowerment, fintech, market traders, economic autonomy, Nigeria

Manuscript Timeline: Received: October 12, 2025; Revised: November 28, 2025; Accepted: December 15, 2025; Published: January 10, 2026

Citation: Bello, A., & Okafor, C. (2026). Digital Microfinance and Women’s Economic Empowerment: Evidence from Urban Market Cooperatives in Lagos. African Journal of Gender and Women Studies, 11(1), 1–8. DOI: 10.46882/2026/AJGWS/000101

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