The African Development Bank (AfDB) said it has approved a $100 million investment for the establishment of the Nigerian Youth Entrepreneurship Investment Bank, a dedicated financial institution aimed at empowering young entrepreneurs across Nigeria and Africa.
According to a report by the News Agency of Nigeria (NAN), this announcement was made by President of the AfDB, Dr. Akinwumi Adesina, during the 14th Convocation Lecture of the National Open University of Nigeria (NOUN) in Abuja.
The lecture, titled “Advancing Africa’s Positioning within Global Development and Geographical Dynamics”, highlighted Africa’s growing role in global innovation, entrepreneurship, and economic resilience.
Bank to provide access to capital and equity
Dr. Adesina emphasized that the new youth bank would not only offer debt and equity financing but also technical assistance and business development services tailored to young entrepreneurs.
“The key to solving unemployment is entrepreneurship,” he said, noting that Africa leads the world in entrepreneurial activity, with 22% of its working-age population launching businesses, according to the Global Entrepreneurship Monitor (2020).
- Sectors identified for growth include agriculture, retail, services, and technology, especially as Africa’s digital economy is projected to add $180 billion to GDP by 2025 and $712 billion by 2050.
- Beyond the youth bank, Adesina also disclosed its support for the Investment in Digital and Creative Enterprises (iDICE) programme, which aims to strengthen small and medium-sized businesses in Nigeria’s creative and tech ecosystems.
- The programme, which has received $614 million in funding from a consortium including AfDB, the Agence Française de Développement (AFD), the Islamic Development Bank, and Nigeria’s Bank of Industry, is projected to inject $6.4 billion into the Nigerian economy and create over six million jobs.
Education gap threatens Africa’s competitiveness
While celebrating the strides in entrepreneurship and innovation, Adesina warned that Africa lags dangerously behind in education, particularly in science and technology fields vital for the Fourth Industrial Revolution.
According to him, only 43% of African youth complete secondary education, compared to 98.9% in Japan.
He added that just 10% pursue higher education in Africa, versus 60% in Japan, while less than 25% of African university students are in STEM fields, compared to 30% in Japan.
To address this, Adesina said the AfDB is collaborating with the African Union to establish a $300 million African Education, Science and Technology Innovation Fund, aimed at building a stronger foundation in artificial intelligence, robotics, cloud computing, and other future-facing disciplines.
A call for structural economic reforms
Dr. Adesina also challenged African governments to build resilience by investing in energy infrastructure, mineral resource development, and technological innovation.
He lamented Africa’s lack of economic buffers in times of crisis, urging leaders to focus on self-reliance and strategic planning.
Speaking at the event, Prof. Attahiru Jega, former INEC Chairman and Chairman of the convocation, praised Adesina as a visionary leader and Africa’s ambassador on the global stage.
