The African Development Bank (AfDB) has announced the launch of a $100 million Nigerian Youth Entrepreneurship Investment Bank to support young entrepreneurs in Nigeria. The initiative was unveiled by the AfDB President, Dr. Akinwumi Adesina, during the 14th convocation ceremony of the National Open University of Nigeria (NOUN) in Abuja.
Dr. Adesina stated that the new bank aims to drive job creation and support Nigeria’s economic diversification efforts. According to him, “entrepreneurship is the key to solving unemployment,” highlighting that Africa has the highest rate of entrepreneurial activity in the world, with 22% of working-age adults engaged in starting businesses.
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Bank to provide finance and support for key sectors
The youth-focused bank will provide a range of services including equity investments, loans, technical assistance, and business development support. It will focus on key sectors such as agriculture, retail, services, and digital technology.
Africa’s digital economy is projected to contribute $180 billion to the continent’s GDP by 2025. The bank seeks to harness this potential by empowering young people with the resources and support needed to develop sustainable businesses.
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Support for creative and tech SMEs through iDICE
In addition to the new bank, the AfDB is also investing in the $614 million iDICE programme, which is designed to grow Nigeria’s creative and technology-driven small and medium-sized enterprises (SMEs).
The iDICE programme is expected to inject up to $6.4 billion into the Nigerian economy and create more than six million jobs. This investment aligns with the bank’s broader goal of supporting youth innovation and employment through entrepreneurship.
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AfDB and AU develop $300m innovation fund
Dr. Adesina also raised concerns about Africa’s education challenges. He noted that only 10% of African youths are enrolled in higher education, significantly lower than global averages. To address this, the AfDB is working with the African Union to develop a $300 million innovation fund.
The fund will focus on expanding education and skills development in emerging sectors such as artificial intelligence, robotics, and cloud computing. The goal is to equip young Africans with the tools and knowledge needed to compete in the global economy.
The launch of the Nigerian Youth Entrepreneurship Investment Bank marks a major step towards addressing unemployment and boosting entrepreneurship among Nigerian youths. Through targeted financial support and capacity building, the AfDB aims to unlock the economic potential of Nigeria’s youth and contribute to long-term development across the region.
