AfDB President Criticizes Nigerian Banks for Failing Young Entrepreneurs

Akinwumi Adesina, President of the African Development Bank (AfDB), has strongly criticized commercial banks in Nigeria and across Africa for their failure to support young entrepreneurs with innovative business ideas.

A Banking System Not Designed for Youth

Speaking on Channels TV, Adesina highlighted systemic barriers preventing young Africans from accessing capital, stating: “The banking system is not designed for young people.” Drawing from his banking experience, he described how financial institutions often see only risk when evaluating young applicants.

“You walk into the bank at 21 years old, and all they see is risk. They demand property or 40 years of tax records – how can a 21-year-old provide that?” Adesina questioned.

Financial System Failing Africa’s Youth

Adesina emphasized that Africa’s financial infrastructure remains ill-equipped to support its youth population:

• Africa has over 465 million people aged 15-35
• Financial markets haven’t adapted to youth needs
• This contributes to the “japa syndrome” of talent migration

“The commercial banking system has failed young people in Africa,” Adesina stated bluntly.

Capital Access Over Token Programs

The AfDB president challenged current youth empowerment approaches:

“Young people don’t need freebies or token programs. They need capital and financial institutions willing to take calculated risks on their ideas.”

Key Takeaways

• Urgent need for financial sector reforms to support youth entrepreneurship
• Banks must revise risk assessment models for young applicants
• Investing in youth businesses could unlock Africa’s economic potential

Adesina’s comments highlight a critical challenge facing Africa’s development as the continent struggles to harness its demographic dividend.

Source: Nairametrics