President of the African Development Bank (AfDB), Akinwumi Adesina, has strongly criticized commercial banks in Nigeria and across Africa for failing to support young entrepreneurs with innovative business ideas.
Speaking on Channels TV on Thursday, Adesina highlighted the systemic barriers that prevent young people from accessing the capital they need to turn their ideas into successful ventures, saying the banking system is not designed for young people.
A system designed to exclude young entrepreneurs
Adesina, drawing from his experience as a banker, described the challenges faced by young Nigerians when seeking loans.
“You walk into the bank, and you see young people, 21 years old, coming in. In your risk assessment, the only thing you see is risk, risk, risk. And so you go ask them for securities that they need to bring to you,” he said.
He pointed out the unrealistic demands placed on young applicants, such as owning property or providing decades of tax records.
“‘(Do) you have a house, (do) you have a land, (do) you have this, (do) you have tax for the last 40 years?’. ‘I’m only 21 years old,’ And so the whole of the system is not designed for young people.”
Ill-equipped to support the youth
Adesina emphasized that the financial system is fundamentally ill-equipped to support the aspirations of Africa’s youth.
“The commercial banking system, the financial system, has failed young people in Africa.”
- Adesina noted that Africa is home to over 465 million young people aged 15 to 35, yet the financial markets have not adapted to meet their needs.
- He questioned why it comes as a surprise that many young Nigerians are leaving the country in search of better opportunities abroad.
“The ‘japa syndrome’ you mentioned—it’s a big loss for us out of Nigeria and many other countries,” he said.
Capital, not freebies, is the solution
Adesina challenged the prevailing approach to youth empowerment, arguing that young people need access to capital rather than tokenistic programs.
“First and foremost, is to recognize that young people don’t need freebies. We don’t need people just saying, ‘Oh well, I just want to give you a youth empowerment program.’ What does that mean?” he asked.
He emphasized that Africa’s youth possess the skills, knowledge, and entrepreneurial capacity to succeed, but lack the financial support to turn their ideas into thriving businesses.
“They need capital. They need you to put your money at risk on their behalf,” Adesina said, urging banks to take bold steps to invest in the future of young entrepreneurs.
What you should know
- Adesina’s remarks highlighted the urgent need for systemic reforms in Africa’s financial sector to empower young people and prevent the loss of talent to migration.
- He called on banks to rethink their risk assessment models and prioritize investments in youth-led businesses.
- By doing so, he argued, Nigeria and other African nations can unlock the potential of their greatest asset—their people.
