President of the African Development Bank (AfDB), Dr Akinwumi Adesina, has expressed deep concern over the failure of Nigeria’s commercial banking system—and by extension, that of Africa—to support young entrepreneurs with viable business ideas.
Speaking during an interview with Channels Television on Thursday, Adesina noted that the financial system is fundamentally not designed to accommodate or encourage youth innovation, describing the current model as structurally exclusionary.
“A System Not Designed for the Youth”
Reflecting on his years in banking, Adesina explained the challenges faced by young Nigerians when seeking financial support from banks.
“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,” he said.
He criticised the unrealistic criteria often imposed on applicants, such as providing land ownership documents or decades-long tax records.
“‘Do you have a house, do you have land, do you have tax for the last 40 years?’ They say, ‘I’m only 21 years old.’ And so the whole of the system is not designed for young people,” he added.
Banking System Has Failed African Youth
Adesina was unequivocal in his assessment: “The commercial banking system, the financial system, has failed young people in Africa.”
He highlighted the disconnect between the continent’s youthful population—estimated at over 465 million aged 15 to 35—and the rigidity of financial institutions. The result, he said, is the migration of talent in search of more supportive environments abroad.
“The ‘japa syndrome’ you mentioned—it’s a big loss for us out of Nigeria and many other countries,” he stated, referring to the growing trend of youth emigration.
“They Need Capital, Not Freebies”
Adesina challenged current approaches to youth empowerment, arguing that capital—not token handouts—is the solution.
“First and foremost is to recognise 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 programme.’ What does that mean?” he queried.
He stressed that Africa’s youth already possess the innovation, energy and skills required for success but are stifled by lack of access to capital.
“They need capital. They need you to put your money at risk on their behalf,” he emphasised, calling on banks to take bold action and back the continent’s most promising demographic.
A Call for Systemic Reform
Adesina’s comments underscore the urgent need for structural reform across Africa’s financial systems. He urged banks to revise their risk assessment models and invest in youth-led businesses to prevent further loss of talent through migration.
“If we change how we invest in young people, we change the future of this continent,” he concluded.