Najeem Salaam Pledges N1bn Loans for Osun Women Entrepreneurs

Najeem Salaam, the African Democratic Congress governorship candidate for Osun State, has unveiled a plan to create a N1 billion loan fund exclusively for women entrepreneurs if he wins the September 2026 election. The proposal targets business owners across the state's 30 local government areas, with priority given to women in agriculture, trading, and small-scale manufacturing. Salaam announced the policy during a campaign rally in Osogbo, the state capital, calling it a direct response to the credit barriers women face when trying to start or expand businesses.

Who Qualifies for the Loans

The loan fund would serve women who run registered businesses or can demonstrate viable business plans, according to Salaam's campaign team. Applicants would not need collateral, a departure from traditional bank lending requirements that often exclude women without property or assets to pledge. The ADC candidate said during his announcement that the fund would prioritise women in rural communities, where access to formal credit remains severely limited. Women operating in sectors including food processing, textile production, poultry farming, and general trading would be eligible under the proposed scheme.

How the Fund Would Work

Salaam's economic advisory team has outlined a structure where the N1 billion would be disbursed in batches through designated microfinance institutions across Osun's three senatorial districts. Loan amounts would range from N500,000 for market traders to N5 million for women with established businesses seeking to scale operations. Interest rates would be set at zero percent for the first two years, with a small service charge applying thereafter. The ADC candidate said his administration would allocate N200 million annually from the state's internally generated revenue to maintain and replenish the fund after the initial capital deployment.

Why Women Entrepreneurs in Osun Need This

Women make up roughly 60 percent of the informal trading sector in Osun State, according to the National Bureau of Statistics, yet they receive less than 10 percent of formal credit extended to small businesses in the state. Commercial banks operating in the region cite lack of collateral, inconsistent cash flow records, and limited business documentation as reasons for rejecting women-owned enterprise loan applications. For a woman trading in fabrics at Owode Market or processing cassava in Ilesa, obtaining a N200,000 bank loan often requires property worth twice that amount as security. This barrier keeps thousands of women in survival-mode entrepreneurship rather than growth-oriented business expansion.

Barriers Beyond Capital

Salaam's proposal acknowledges that access to credit alone does not guarantee business success. His campaign has indicated that loan recipients would be required to attend a two-week business management course before receiving funds. Topics would cover financial record-keeping, inventory management, and market expansion strategies. This capacity-building component targets a gap identified by the International Finance Corporation, which found that Nigerian women-owned businesses frequently fail not from lack of capital but from inadequate financial management skills.

Political Context and Credibility Questions

The ADC has never held the governorship in Osun State, where the All Progressives Congress and the Peoples Democratic Party have dominated elections since the return to democracy in 1999. Salaam enters the 2026 race as a third-party candidate with limited name recognition outside Osogbo and Ilesa, the state's two largest cities. Political analysts note that governorship candidates frequently announce ambitious spending plans during campaigns, and the ability to deliver depends heavily on whether the party can form a government and secure legislative approval for budget allocations. The ADC candidate has not specified how his administration would source the N1 billion beyond the annual revenue allocation proposal.

Reactions from Osun's Business Community

Women traders at Oluwo-of-Woods Market in Ilesa reacted cautiously to the announcement, with some expressing interest but questioning whether the loans would actually reach them. Abiodun Adeyemi, who processes and sells garri from a family farm in Atakumosa East Local Government, said she has heard promises from politicians before. "They tell us they will help us access money, then we never see anything," Adeyemi said. "If this one is real, it will change many families in my area." Other women noted that even a genuine fund would need transparent application processes and local distribution points to reach rural entrepreneurs who cannot travel to Osogbo for banking procedures.

What Happens Next

The September 2026 governorship election in Osun State will determine whether Salaam's proposals ever move beyond campaign talking points. The ADC candidate is expected to face APC incumbent Gboyega Oyetola, who is seeking a second term, and multiple opposition challengers including the PDP's nominee. Voters should watch for the publication of detailed implementation frameworks from the Salaam campaign, including the proposed loan application process, eligibility criteria, and repayment terms. Whether the N1 billion fund materialises or remains a campaign promise will depend on which candidate carries Osun's 1.4 million registered voters to the governorship office in three months' time.