The African Development Bank has approved a $100 million fund for the establishment of a Youth Entrepreneurship Investment Bank for Nigerian youths.
Dr. Akinwumi Adesina, the President of AFDB, made this announcement during a public lecture in Abuja celebrating the 90th birthday of former Head of State, General Yakubu Gowon. The initiative aims to foster economic development by supporting youth-led businesses and entrepreneurship in Nigeria.
A New Financial Institution for Youth Empowerment
The Youth Entrepreneurship Investment Bank will focus on providing Nigerian youth with financial and non-financial support, including technical assistance, business incubation, quasi-equity, and debt financing.
Dr. Adesina highlighted the AfDB’s commitment to Nigeria’s youth demographic, which is critical to the nation’s future economic growth.
“Nigeria has the largest population of youth in the world, with a median age of 18.1 years. About 70% of the population is under 30, and 42% is under the age of 15,” Adesina noted. This emphasizes the importance of creating opportunities for young Nigerians to drive innovation and entrepreneurship in their own country.
Reversing the “Japa” Migration Trend
One of the key goals of the Youth Entrepreneurship Investment Bank is to counter the rising “Japa” trend—a term used to describe the emigration of Nigerian youth to seek better opportunities abroad. According to the United Nations, the number of Nigerians leaving the country increased from 30,000 in 2023 to 270,000 in 2024.
Data from the UK Home Office indicates a 399% rise in “Worker” visas issued to Nigerians between 2019 and 2022.
Similarly, Nigeria became the fifth-largest source of immigrants to Canada in 2021, according to Statistics Canada. Dr. Adesina emphasized that Nigeria’s future does not lie in emigration but in developing homegrown talent through government policies and support systems like the Youth Entrepreneurship Bank.
De-risking Lending for Financial Institutions
In partnership with the Nigerian government, the Youth Entrepreneurship Investment Bank will deploy guarantee instruments to mitigate risks for financial institutions lending to youth-led businesses.
Dr. Adesina thanked Nigeria’s Finance Minister, Wale Edun, for his role in facilitating the approval of the $100 million funding. This initiative is expected to play a pivotal role in reducing youth unemployment and fostering sustainable economic development.
“It’s a new day and a new dawn for Nigeria,” Dr. Adesina concluded, expressing optimism that this investment will not only create opportunities for Nigerian youth but also help retain talent in the country.
