The African Development Bank (AfDB) has officially launched a $100 million bank for young entrepreneurs in Nigeria, designed to help support the country’s young business owners. Akinwumi Adesina, the President of the AfDB, introduced this new program during a public event celebrating the 90th birthday of former Nigerian leader, General Yakubu Gowon.
This new investment bank, which was recently approved by the AfDB’s board, will offer both financial and technical help to young business owners throughout Nigeria. The support provided will include technical assistance, business incubation services, equity investments, quasi-equity investments, and guarantee tools to make lending easier.
Adesina explained that this program highlights the AfDB’s dedication to using Nigeria’s young people to drive economic growth. “Nigeria is home to five of Africa’s top seven fintech companies, showing its huge potential that hasn’t been fully utilised yet,” Adesina pointed out.
He highlighted the importance of dealing with the large number of skilled young Nigerians leaving the country, often referred to as the ‘Japa syndrome.’ This point was made based on a 2022 survey by TechCabal.
The survey showed that 47% of tech professionals in Nigeria were planning to leave the country by 2024. To stop this trend, Adesina suggested a plan to make Nigeria a strong competitor on the global stage. This plan includes building strong infrastructure, offering better salaries, creating advanced facilities and tech centres, and giving more support for innovation and starting new businesses.
Adesina also emphasised the need for steady and lasting government policies to encourage growth and competitiveness. “We must effectively use Nigeria’s large population and turn it into a valuable resource,” Adesina said.