President of the African Development Bank (AfDB), Akinwumi Adesina, has strongly criticized commercial banks in Nigeria and across Africa for failing to support young entrepreneurs with innovative business ideas.
Speaking on Channels TV on Thursday, Adesina highlighted the systemic barriers that prevent young people from accessing the capital they need to turn their ideas into successful ventures, saying the banking system is not designed for young people.
A system designed to exclude young entrepreneurs
Adesina, drawing from his experience as a banker, described the challenges faced by young Nigerians when seeking loans.
“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 pointed out the unrealistic demands placed on young applicants, such as owning property or providing decades of tax records.
“‘(Do) you have a house, (do) you have a land, (do) you have this, (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.”
Ill-equipped to support the youth
Adesina emphasized that the financial system is fundamentally ill-equipped to support the aspirations of Africa’s youth.
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