The African Development Bank (AfDB) has announced the establishment of a $100 million Youth Entrepreneurship Investment Bank in Nigeria to support the nation’s young entrepreneurs.
Akinwumi Adesina, president of the AfDB, revealed this initiative during a public lecture marking the 90th birthday of former military head of state, Yakubu Gowon.
Recently approved by the AfDB board, the investment bank is designed to offer both financial assistance and technical support to young business owners across Nigeria.
This new bank will support the business ventures of Nigerian youths through technical assistance, business incubation, and investment in equity and quasi-equity, as well as guarantee instruments to derate the lending to all financial institutions.
Adesina said this underscores the bank’s commitment to harnessing the potential of Nigeria’s youth for economic growth.
He stressed that the future of Nigeria’s youth lies within the country, not abroad, and highlighted the pressing need to tackle the factors contributing to the mass exodus of skilled young people, particularly in light of the widespread ‘Japa syndrome.’
During the lecture, he cited a 2022 survey by TechCabal, which indicated that 47 percent of tech professionals in Nigeria planned to leave the country by 2024.
“Nigeria is home to five of Africa’s top seven fintech unicorns,” Adesina noted, emphasising the country’s leadership in the fintech sector as evidence of its vast untapped potential”.
“This exodus risks unraveling Nigeria’s capacities, particularly in technology and innovation, jeopardizing our readiness for the fourth industrial revolution and hindering our progress into advanced sectors such as electronics, semi-conductors, and space exploration,” he warned.
To address this trend, Adesina proposed a strategy to transform Nigeria into a globally competitive nation. He urged the development of robust infrastructure, the offer of more competitive salaries, the creation of cutting-edge facilities and technology hubs, and stronger support for innovation and entrepreneurship.
Additionally, Adesina highlighted the need for consistent and sustainable government policies to create an environment that fosters growth and competitiveness.
“We must decisively harness Nigeria’s demographic asset and turn it into a talent dividend,” he urged, highlighting the potential for Nigeria to emerge as a leader not only in West Africa but globally.
“I’m not against immigration, but I firmly believe that the future of Nigeria’s youth, and indeed Africa, does not lie in Europe, America, or China,” he said. “The future lies in Nigeria, growing equitably and robustly.”
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
