By Jennete Ugo Anya
Former President of the African Development Bank (AfDB), Dr. Akinwumi Adesina, has called for increased investment in young Nigerian entrepreneurs, arguing that affordable capital is essential to building businesses, creating jobs and generating wealth.
DEVELOPMENT
Adesina made the call while delivering a speech titled ‘Building the Demographic Asset Class’ at the Seyi Tinubu Colloquium in Lagos on Monday.
He criticised conventional lending practices that exclude young entrepreneurs unable to provide traditional collateral.
“When a young person walks into a bank, what the bank often sees is not an asset. It sees a risk,” he said.
“Yet young people do not want to fail. They want the opportunity to succeed. What they need is a financial system that is prepared to believe in them, take appropriate risks and invest in their potential,” Adesina said.
He also said that the Youth Entrepreneurship Investment Bank (YEIB) model was designed to address funding constraints and help young business owners build sustainable enterprises.
The AfDB provided $100 million to support the model in Nigeria, complemented by investments from the Nigerian Sovereign Investment Authority (NSIA) and the Development Bank of Nigeria (DBN).
“We also provided $100 million to support the establishment of the Youth Entrepreneurship Investment Bank model in Nigeria, complemented by investments from the NSIA and the DBN,” he said.
Adesina explained that the initiative was intended to create lasting economic value rather than serve as another conventional empowerment programme.
“Its purpose is not simply to provide another form of youth empowerment. The goal is to build youth-based wealth for Nigeria,” he said.
“It is about taking calculated risks, supporting promising businesses and helping young entrepreneurs build enterprises that can create jobs, income and lasting wealth,” he said.
He welcomed efforts by President Bola Tinubu’s administration to introduce the initiative.
“I am delighted that the government of President Bola Tinubu is working to roll out this important initiative,” Adesina said.
He stated: “Nigeria will invest in you. Nigeria will create opportunities for you to build wealth. And, ultimately, Nigeria can help create the next generation of great African entrepreneurs.”
Adesina outlined a pathway linking skills, finance and markets to enterprise development.
“Build capability. Connect it to capital. Connect it to markets. Create enterprise. Generate value. A young person with technology skills becomes a creator. A creator can become an entrepreneur. An entrepreneur can become an employer. A growing business creates income, innovation and wealth. That is the Demographic Asset Class generating returns,” he said.
DATA
The AfDB committed $100 million to support the Youth Entrepreneurship Investment Bank model, with additional investments from the Nigerian Sovereign Investment Authority and the Development Bank of Nigeria. The amounts of their respective contributions were not disclosed.
SIGNIFICANCE
The proposal targets a major financing barrier for young entrepreneurs by seeking to connect business potential with affordable capital, employment creation and market access.
NEXT MOVE
Attention should focus on the rollout of the initiative, its funding structure, eligibility criteria, lending terms and mechanisms for assessing business performance.
OUR LENS
Adesina’s argument reframes youth investment as an economic development strategy rather than a social intervention. Its success will depend on whether funding reaches viable enterprises, supports business survival and growth, and translates entrepreneurial skills into jobs, productivity and sustainable wealth.
Jennete Ugo Anya is a journalist and researcher with interests across Nigeria’s economy, public policy, business, MSMEs, development and strategic communications, Foreign direct investments, development finance institutions.
Discover more from StakeBridge Media
Subscribe to get the latest posts sent to your email.