This chapter examines the potential of microfinance institutions (MFIs) in empowering women in Nigeria amidst ongoing gender disparities. Despite global efforts to address these issues, Nigerian women continue to face significant challenges due to cultural norms, educational disparities, and limited financial access. This chapter outlines key policies, such as the Better Life Programme for Rural Women and the National Gender Policy, while highlighting how MFIs can address barriers by providing financial services, promoting financial literacy, and fostering financial inclusion through technology. This chapter also discusses the challenges MFIs face, including high operational costs and regulatory constraints, and concludes with policy recommendations to enhance the effectiveness of MFIs in empowering women, particularly in rural and underserved areas.