The announcement was delivered by the AfDB President, Dr. Akinwumi Adesina, a prominent figure in African development finance, during his keynote address at the 14th Convocation Lecture of the National Open University of Nigeria (NOUN) held in Abuja. His lecture, aptly titled “Advancing Africa’s Positioning within Global Development and Geographical Dynamics,” provided a platform to underscore Africa's escalating influence in global innovation, entrepreneurship, and the pursuit of economic resilience.
More Than Just Capital: A Hub for Youth-Led Growth
Dr. Adesina elaborated that the proposed Nigerian Youth Entrepreneurship Investment Bank is designed to be far more than a traditional lending institution. It aims to provide a holistic ecosystem of support tailored specifically to the needs of young business innovators. This includes offering accessible debt financing and crucial equity investments, alongside vital technical assistance and comprehensive business development services. The goal is to equip young Nigerians with not just the capital, but also the knowledge and strategic support necessary to navigate the complexities of launching and scaling successful enterprises.
"The key to solving unemployment is entrepreneurship," Dr. Adesina asserted, highlighting a fundamental pillar of the bank's mission. He referenced compelling data from the Global Entrepreneurship Monitor (2020), which indicates that Africa leads the world in entrepreneurial dynamism, with an impressive 22% of its working-age population initiating new business ventures. This inherent entrepreneurial spirit, particularly vibrant among the youth, is what the new bank seeks to harness and cultivate.
Identified sectors poised for significant youth-driven growth include agriculture, retail, diverse services, and particularly the rapidly evolving technology landscape. The focus on tech aligns with projections showing Africa's digital economy contributing an estimated $180 billion to the continent's GDP by 2025, with a potential leap to $712 billion by 2050.
Synergy with Existing Initiatives: The iDICE Programme
The commitment to fostering Nigerian innovation extends beyond this new youth bank. Dr. Adesina also pointed to the AfDB's active support for the Investment in Digital and Creative Enterprises (iDICE) programme. This major initiative, bolstered by $614 million in combined funding from the AfDB, the Agence Française de Développement (AFD), the Islamic Development Bank, and Nigeria’s own Bank of Industry, is specifically designed to fortify small and medium-sized businesses (SMBs) operating within Nigeria's dynamic creative and technology sectors. Projections for the iDICE programme are ambitious, anticipating an injection of approximately $6.4 billion into the Nigerian economy and the creation of over six million jobs, further complementing the goals of the youth entrepreneurship bank.
Addressing the Education Imperative for Future Competitiveness
While celebrating Africa's entrepreneurial drive, Dr. Adesina delivered a sobering assessment of the continent's educational landscape, warning that significant gaps threaten its long-term competitiveness, especially in the era of the Fourth Industrial Revolution. He highlighted concerning statistics: only 43% of African youth complete secondary education, a stark contrast to Japan's 98.9%. Furthermore, participation in higher education stands at just 10% in Africa compared to 60% in Japan. Critically, less than 25% of African university students are enrolled in Science, Technology, Engineering, and Mathematics (STEM) fields, compared to 30% in Japan.
Recognizing this challenge, Dr. Adesina revealed a proactive measure: the AfDB is collaborating with the African Union to establish a $300 million African Education, Science and Technology Innovation Fund. This fund is strategically aimed at building a more robust educational foundation, particularly fostering expertise in future-critical disciplines such as artificial intelligence (AI), robotics, cloud computing, and other advanced technologies.
A Call for Broader Economic Fortification
Concluding his address, Dr. Adesina issued a call for systemic change, urging African governments to prioritize the building of national economic resilience. He emphasized the critical need for strategic investments in foundational areas like energy infrastructure, the sustainable development of Africa's vast mineral resources, and the continuous nurturing of technological innovation. Lamenting the frequent lack of adequate economic buffers to cushion against global crises, he stressed the imperative for increased self-reliance and forward-thinking strategic planning across the continent.
The significance of Dr. Adesina's contributions was echoed by Prof. Attahiru Jega, the former Chairman of Nigeria's Independent National Electoral Commission (INEC) and Chairman of the NOUN convocation. Prof. Jega praised the AfDB President as a visionary leader and a vital ambassador representing Africa's interests and potential on the global stage. The establishment of the Nigerian Youth Entrepreneurship Investment Bank stands as a concrete manifestation of this vision, promising to unlock and channel the immense innovative capacity of Nigeria's youth towards a more prosperous and self-determined future.