Nigeria's Bank of Industry to float youth subsidiary that will offer young people low-interest loans

NIGERIA'S Bank of industry (BoI) has announced plans to float a youth subsidiary that will only low-interest loans to young people looking to set up businesses as part of an ambitious programme to drive industrialisation across the country.

According to Olasupo Olusi, the BoI's managing director, the bank is also planning to unveil an impact fund as part of a programme to support enterprise development and drive youth-led industrialisation across Nigeria. Speaking during the recent inaugural Innovation and Entrepreneurship Development Annual Lecture organised by Obafemi Awolowo University, Mr Olusi said the initiatives are aligned with the federal government’s Renewed Hope Agenda.

He added that the programmes are aimed at closing funding gaps for youth-led businesses and innovation-driven enterprises. According to Mr Olusi, the BoI impact fund will deploy various financial instruments, including debt and equity to support high-growth enterprises and strategic value chain companies while also providing critical support to struggling businesses.

Mr Olusi said: “I want to announce that in line with the current administration’s Renewed Hope Agenda, BoI is supporting the federal government’s drive to create a youth bank which will focus entirely on developing youth entrepreneurship. With a median age of just 18 years and over 70% of its population under 30, Nigeria is one of the youngest countries in the world.

"Yet, this youth bulge presents a dual-edged sword as annually, around 8m young Nigerians enter the labour market but the economy offers limited job prospects.  Universities like Obafemi Awolowo University must become more than centres of knowledge - they must be incubators of enterprise and innovation."

He added that an industrial innovation fund, also in the works, will address the full lifecycle of innovation by supporting research, development and market entry for emerging entrepreneurs, particularly in the digital and creative sectors. Furthermore, Mr Olusi emphasised the need to shift Nigeria’s narrative from limitations to potential, stressing that empowering the youth through innovation and entrepreneurship is key to achieving sustainable development and inclusive economic growth.

Mr Olusi warned that the absence of opportunities for the youth could fuel disillusionment and insecurity, noting that investing in young entrepreneurs would not only create jobs but transform Nigeria’s economic trajectory. At the occasion, Mr Olusi was honoured with the university’s first Award of Excellence in Innovation and Entrepreneurship Development for his contributions to youth empowerment and industrial growth.