Dr. Akinwumi Adesina, President of the African Development Bank (AfDB), delivered a powerful message at the 90th birthday celebration of former Nigerian President General Yakubu Gowon. Adesina highlighted Nigeria’s pressing economic issues, particularly the alarming youth brain drain, referred to as the “Japa” syndrome, where many young Nigerians are leaving the country due to economic challenges. His speech emphasized the need for urgent investments in Nigeria’s youth to reverse this trend and pave the way for a prosperous future. A significant announcement during the event was the African Development Bank’s approval of $100 million for the creation of a Youth Entrepreneurship Investment Bank in Nigeria. This initiative aims to foster innovation, entrepreneurship, and job creation among Nigeria’s youth, ensuring that the country retains its talented and ambitious young population.

Addressing the “Japa” Syndrome and Economic Challenges

The “Japa” phenomenon, which refers to young Nigerians leaving the country for better opportunities abroad, is symptomatic of deeper economic issues facing Nigeria. Adesina lamented that Nigeria, 64 years after gaining independence, should not still be considered a developing country. He expressed concern that the country was losing its brightest minds to other nations, a trend that threatens Nigeria’s long-term economic growth and global standing.

“The rate and speed at which Nigerians are leaving the country – the so-called ‘Japa’ syndrome – risks undermining Nigeria’s drive for economic rejuvenation and positioning for global dominance,” Adesina stated. He urged for a shift in Nigeria’s economic strategy, focusing on investing in youth and creating an environment conducive to innovation and entrepreneurship. According to him, this shift could transform the “Japa” mentality into “Ja Pada,” a movement of return, where young Nigerians who left would come back to contribute to the nation’s development.

The African Development Bank’s $100 Million Youth Investment Initiative

In response to these challenges, the African Development Bank’s Board of Directors approved $100 million to establish the Youth Entrepreneurship Investment Bank. This bank will provide financial and technical support to young entrepreneurs, helping them build and scale their businesses. By offering a combination of equity, quasi-equity, and debt investments, along with business incubation and technical assistance, the bank aims to empower Nigeria’s youth to create sustainable enterprises that drive economic growth.

“This new bank will support the businesses of the youth in Nigeria,” Adesina said, emphasizing the importance of investing in young talent. The bank is expected to play a key role in curbing the mass exodus of Nigeria’s young, educated population, providing them with opportunities to thrive within their own country.

AfDB’s Broader Commitment to Nigerian Youth

Beyond the $100 million Youth Entrepreneurship Investment Bank, the African Development Bank is already heavily involved in efforts to stem the outflow of talent from Nigeria. Through its Investment in Digital and Creative Enterprises (i-DICE) program, the bank, in collaboration with partners, has invested $614 million to develop Nigeria’s digital and creative sectors. These industries have immense potential to create high-quality jobs, foster innovation, and contribute significantly to Nigeria’s GDP. The i-DICE program is projected to add $6 billion to the country’s GDP and create 6.4 million jobs, further bolstering Nigeria’s growing digital economy.

Poverty and Its Link to Youth Exodus

Adesina emphasized that addressing Nigeria’s poverty crisis is crucial to achieving a “Global Nigeria.” Citing statistics from the National Bureau of Statistics, which show that 133 million Nigerians are multidimensionally poor, Adesina stressed that poverty is a root cause of the brain drain. Poverty leads to rising crime rates, including banditry, kidnappings, and armed robbery, which exacerbate the challenges faced by young people and encourage them to seek opportunities abroad.

He noted that a “Global Nigeria” must begin with eradicating poverty, starting with the agricultural sector. Adesina called for a return to the Growth Enhancement Scheme and the electronic-wallet scheme—initiatives introduced during his tenure as Nigeria’s Minister of Agriculture. These programs successfully delivered high-quality seeds and fertilizers to over 15 million farmers, ensuring food security and lowering the cost of food in the country.

To further support Nigeria’s agricultural sector, the AfDB has provided $314 million for emergency food production and invested over $814 million in the development of Special Agro-Industrial Processing Zones (SAPZs) in eight states. These zones aim to enhance agricultural productivity and attract investment, creating job opportunities, particularly for youth in rural areas.

The Need for Investment in Education and Infrastructure

Another key element of Adesina’s vision for a “Global Nigeria” is significant investment in education. With only 7% of Nigeria’s population having access to higher education, Adesina argued that Nigeria must prioritize education to compete globally and lead Africa in innovation. The country’s education system must be revamped to produce graduates with the skills necessary to drive innovation, entrepreneurship, and industrialization.

In addition to education, Adesina underscored the importance of globally competitive infrastructure. Infrastructure development is critical for industrialization, trade, and economic growth. AfDB is working with international partners to mobilize $15 billion for the development of the Lagos to Abidjan corridor, which carries over 80% of trade in West Africa. This infrastructure project will enhance regional integration and provide a significant boost to Nigeria’s economy.

Furthermore, AfDB is supporting the development of the Kano to Maradi railway line, connecting northern Nigeria to Niger Republic. This project is part of Nigeria’s broader efforts to improve transportation infrastructure, facilitate trade, and strengthen economic ties with neighboring countries.

Addressing Nigeria’s Energy Deficit

Access to reliable electricity remains one of Nigeria’s most significant challenges. Adesina highlighted that no business can survive in Nigeria without generators, a situation that has become the norm despite its abnormality. To address this, the African Development Bank is supporting several electricity projects across Nigeria. The country is one of 11 nations earmarked to benefit from AfDB’s $20 billion Desert to Power initiative, which aims to provide electricity to 250 million people in the Sahel region.

Earlier this year, Adesina and World Bank President Ajay Banga announced the Mission 300 initiative, a joint effort to connect 300 million Africans to electricity by 2030, with Nigeria being a key beneficiary. This initiative aims to resolve Nigeria’s chronic energy shortage and support the country’s industrialization efforts.

The Role of Industrialization in a Global Nigeria

In his lecture, Adesina recalled Nigeria’s industrial policy in the 1970s, which supported automobile assembly plants, leading to the production of “Made in Nigeria” Peugeots and Volkswagens. He lamented that Nigeria had not sustained this drive, which could have positioned the country as a major exporter of vehicles in Africa. However, he praised Innoson Motors, an indigenous Nigerian automobile manufacturer, as a beacon of hope for Nigeria’s industrial future.

Adesina argued that for Nigeria to become a global powerhouse, it must embrace industrialization and move into high-value manufacturing. This shift will create jobs, increase exports, and reduce the country’s dependence on imported goods.

Conclusion

In his closing remarks, General Yakubu Gowon, the former Nigerian president, praised Adesina’s speech, describing it as a “masterpiece” that resonates deeply with Nigeria’s current economic challenges. Gowon urged Nigerian leaders to heed Adesina’s advice and implement the necessary reforms to create a prosperous, “Global Nigeria.” Similarly, former President Olusegun Obasanjo described the event as a “moment of national recognition,” underscoring the importance of Adesina’s message for the future of Nigeria.

Through its continued investments in youth entrepreneurship, agriculture, infrastructure, and energy, the African Development Bank is playing a pivotal role in Nigeria’s development. With strong leadership and strategic investments, Nigeria has the potential to transform into a developed nation and become a global economic powerhouse.

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Photo source: Google

By: Montel Kamau

Serrari Financial Analyst

23rd October, 2024