This article is part of a series produced in collaboration with the African Development Bank in light of its sixtieth anniversary.
Please visit our dedicated portal to read about the Bank’s history and its activities on the continent.
The African Development Bank has approved $100 million in new financing to support the establishment of the Youth Entrepreneurship Investment Bank in Nigeria. This new institution will support youth-run and youth-owned enterprises by providing technical assistance and business incubation, as well as funding through equity, quasi-equity, and debt financing.
Akinwumi Adesina, President of the African Development Bank, said the Bank is ramping up its support for Nigerian entrepreneurs in order to stem the exodus of the country’s young and innovative talent, who are leaving the country in droves due to economic hardships. This talent drain – driven in part by persistent challenges such as high unemployment, steep inflation and insecurity – costs Nigeria’s economy nearly $5 billion annually, according to PwC.
“The rate and speed at which Nigerians are leaving the country – the so called ‘Japa’ syndrome risks undermining Nigeria’s drive for economic rejuvenation and positioning for global dominance,” Adesina said in a special lecture in Abuja marking the 90th birthday celebration of Nigeria’s former President General Yakubu Gowon.
Massive investments in education
He told Nigeria’s top business and political leaders attending the event that, for Nigeria to emerge as a globally competitive economic powerhouse, massive investments were needed in education.
“The ability of any nation to globally compete is determined by its human capacity, or talent pools. That is why the greatest investment that Nigeria can make is in education, especially higher education.”
Arguing that low educational attainment was stifling Nigeria’s potential, he offered the example of China, which has emerged as a global economic powerhouse thanks to sustained investments in education and skills development.
“It is worth noting that today, China has more than 240 million people with higher education, which is more than the entire population of Nigeria. However, only 7% of Nigeria’s population have had access to higher education,” he said.
He pointed out that this puts Nigeria at a distinct disadvantage compared with developed countries, where the share of the population with higher education is high, including South Korea, 70%; Canada, 67%; Japan, 66%; Ireland, 63%; Luxembourg, 60%; and UK, 58 %.
The Bank’s chief said that, in collaboration with its partners, the Bank is investing $614 million in the Investment in Digital and Creative Enterprises (i-DICE) program in Nigeria. This initiative aims to bridge the talent divide and enhance the skills of Nigeria’s workforce, making it more competitive in the global digital economy.
“This is a bold initiative designed to develop digital and creative enterprises, which will help add $6 billion to Nigeria’s GDP and create 6.4 million jobs,” he declared.
Combating poverty key
Additionally, Adesina urged Nigeria’s leaders to intensify their efforts to combat poverty, which remains alarmingly widespread. According to Nigeria’s national statistics office, 133 million people, or 63% of the population, were considered “multidimensionally poor” as of 2022. This means they experience deprivation across multiple aspects of life, not just income, and includes deficiencies in areas such as education, health and living standards.
Adesina argued that these high poverty rates are fuelling the insecurity crisis plaguing parts of the country. “Today, poverty is extremely pervasive in Nigeria. These extremely high levels of poverty have fueled criminality, banditry, kidnappings, and armed robbery.”
Despite the challenges, he expressed optimism that, with the right policies and the Bank’s unwavering support, Nigeria could turn the corner and take its rightful place as a global economic powerhouse. “It is time to look beyond our challenges and decisively seize the moment. When others doubt us, we must never doubt ourselves.”
This article is part of a series produced in collaboration with the African Development Bank in light of its sixtieth anniversary. Please visit our dedicated portal to read about the Bank’s history and its activities on the continent.