AfDB Approves $100M Loan to Boost Youth and Women-led Businesses in Nigeria

Nigeria Youth Entrepreneurship Investment Bank Aims to Create Over 161,000 Jobs and Support 76,000 Youth-led Enterprises.

The African Development Bank has approved a $100 million loan to increase access to finance for youth and women-led small and medium enterprises (SMEs) through the Nigeria Youth Entrepreneurship Investment Bank (YEIB) initiative. This pioneering program is designed to stimulate economic growth and tackle youth unemployment in Nigeria by creating an ecosystem that fosters entrepreneurship.

The Nigeria YEIB will act as a central platform, connecting financial and non-financial stakeholders to support youth entrepreneurs. The initiative is a collaboration between the African Development Bank, Nigeria’s Ministry of Finance Incorporated, the Nigeria Sovereign Investment Authority (NSIA), and the Development Bank of Nigeria (DBN). The $100 million from the Bank will be complemented by an additional $25 million from DBN and $5 million from NSIA.

The project consists of two key pillars: the establishment of the YEIB Investment Management Company to oversee three special purpose vehicles – an Equity Investment Fund (EIF), an Ecosystem Development Fund (EDF), and a Credit Guarantee Facility (CGF). These will focus on investing in early-stage businesses, providing business development grants, and offering risk mitigation to improve access to credit for SMEs.

By supporting youth and women-led enterprises, the initiative aims to create over 161,000 direct jobs, with 40% allocated to women, and 1.4 million indirect jobs, with 35% reserved for women. It will provide financial services to more than 38,000 youth-led enterprises and non-financial services to another 38,000, ensuring that at least 40% of beneficiaries are women.

The Director General for Nigeria at the African Development Bank, Dr. Abdul Kamara, hailed the project as a transformative step for Nigeria’s economy, particularly in addressing youth unemployment and reducing gender gaps. Additionally, Mr. Ahmed Attout, Director of the Bank’s Financial Sector Development Department, emphasized the initiative's broader impact, moving beyond temporary solutions and positioning Nigerian youth entrepreneurs as a valuable investment asset.

This project is part of a broader initiative to establish YEIBs across Africa, following previous approvals in Liberia and Ethiopia, and aims to provide a sustainable, long-term solution to Africa's youth employment challenges.