Akinwumi Adesina, President of the African Development Bank (AfDB), has delivered a scathing critique of commercial banks across Nigeria and Africa, accusing them of systematically excluding young entrepreneurs from accessing crucial capital. In a recent interview on Channels TV, Adesina highlighted the stark realities faced by young individuals seeking to turn innovative business ideas into successful ventures.
“The commercial banking system, the financial system, has failed young people in Africa,” Adesina stated, drawing from his extensive experience as a banker. He described the daunting process young Nigerians endure when seeking loans, emphasizing the unrealistic demands placed upon them. “You walk into the bank, and you see young people, 21 years old, coming in. In your risk assessment, the only thing you see is risk, risk, risk. And so you go ask them for securities that they need to bring to you. ‘(Do) you have a house, (do) you have a land, (do) you have tax for the last 40 years?’. ‘I’m only 21 years old,’ And so the whole of the system is not designed for young people.”
Adesina’s remarks underscore a systemic issue: financial institutions are fundamentally ill-equipped to support the aspirations of Africa’s vast youth population, estimated at over 465 million aged 15 to 35. This disparity, he argues, directly contributes to the “japa syndrome,” the increasing exodus of young Nigerians seeking better opportunities abroad. “The ‘japa syndrome’ you mentioned—it’s a big loss for us out of Nigeria and many other countries,” he acknowledged.
Instead of tokenistic “youth empowerment programs,” Adesina passionately advocated for providing young entrepreneurs with tangible capital. “First and foremost, is to recognize that young people don’t need freebies. We don’t need people just saying, ‘Oh well, I just want to give you a youth empowerment program.’ What does that mean?” he questioned. “They need capital. They need you to put your money at risk on their behalf.”
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Adesina’s analysis points to a critical need for banks to overhaul their risk assessment models. He believes that by investing in youth-led businesses, financial institutions can unlock the immense potential of Africa’s most valuable asset: its young people. This shift, he argues, is not merely a matter of social responsibility but a strategic imperative for economic growth.
From my perspective, as someone who has observed the entrepreneurial spirit of young Africans, Adesina’s call to action resonates deeply. The current financial landscape often feels like a maze for young innovators, where traditional metrics overshadow the potential for disruptive ideas.
The AfDB President’s intervention serves as a powerful reminder that empowering young entrepreneurs is not just a moral obligation but a pragmatic necessity. By rethinking their approach, banks can play a pivotal role in fostering a vibrant, inclusive economy that retains and nurtures its brightest minds.
