Nigeria must invest in young entrepreneurs — Ex-AfDB president Adesina

File photo: Dr Akinwumi Adesina

Former President of the African Development Bank, Dr Akinwumi Adesina, has called for increased investment in young Nigerian entrepreneurs, saying access to affordable capital is essential to helping them grow businesses, create jobs and build wealth.

Adesina made the call while delivering a speech titled, “Building the Demographic Asset Class”, at the Seyi Tinubu Colloquium in Lagos on Monday.

He said young entrepreneurs needed a financial system willing to invest in their potential rather than reject them because they lacked 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.

According to him, the conventional credit assessment system often prevents young entrepreneurs from accessing loans because they cannot provide the collateral required by financial institutions.

“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 said the Youth Entrepreneurship Investment Bank model was designed to address the funding challenges confronting young business owners and help them build sustainable enterprises.

Adesina disclosed that the African Development Bank provided $100m to support the establishment of the Youth Entrepreneurship Investment Bank model in Nigeria, with additional investments from the Nigerian Sovereign Investment Authority and the Development Bank of Nigeria.

“We also provided $100 million to support the establishment of the Youth Entrepreneurship Investment Bank model in Nigeria, complemented by investments from the Nigerian Sovereign Investment Authority and the Development Bank of Nigeria,” he said.

He explained that the initiative was intended to go beyond conventional youth empowerment programmes by supporting wealth creation through youth-led businesses.

“Its purpose is not simply to provide another form of youth empowerment. The goal is to build youth-based wealth for Nigeria,” he said.

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Adesina added that the model would support promising businesses, create employment opportunities and generate income by providing young entrepreneurs with access to capital.

“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 expressed optimism about the initiative, saying the administration of President Bola Tinubu was working to roll it out.

“I am delighted that the government of President Bola Tinubu is working to roll out this important initiative,” Adesina said.

He said the programme could reassure young Nigerians that the country was prepared to invest in their ambitions and provide opportunities for them to build successful businesses.

“Nigeria will invest in you. Nigeria will create opportunities for you to build wealth,” he said.

Adesina added that investing in young people could help produce a new generation of successful African entrepreneurs.

“And, ultimately, Nigeria can help create the next generation of great African entrepreneurs,” he said.

He outlined a pathway from skills development to wealth creation, arguing that equipping young people with technology skills and connecting them to capital and markets could help them establish businesses and employ others.

“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.