Lagos: Prof. Olalekan Asikhia, the Vice Chancellor of Caleb University, has emphasized the need for Africa to transition from charity-focused poverty reduction strategies to enterprise-driven prosperity, highlighting innovation, entrepreneurship, and accountability as the cornerstones of this shift. Asikhia made these remarks during the 57th Inaugural Lecture at Babcock University, which was entitled ‘It Is Time to Use Functional Businesses to Kill Poverty in Africa’.
According to News Agency of Nigeria, Asikhia emphasized the immense potential, talent, and resources available in Africa, arguing that what the continent truly needs are functional businesses, visionary thinking, integrity, and effective institutions. He pointed out the staggering statistics of poverty across the continent, noting that in 2022, 546 million Africans were living in poverty. The continent holds the highest global proportion of the world’s poor, with projections indicating that by 2025, extreme poverty may affect more than 438 million people, accounting for 43.9 percent of the population.
Highlighting the challenges, Asikhia identified income inequality, weak governance, policy inconsistencies, and institutional deficiencies as the root causes of poverty. He argued that despite being rich in resources, Africa remains trapped in poverty due to these systemic issues. Reviewing decades of poverty alleviation efforts in countries such as Nigeria, Senegal, Egypt, Ethiopia, Kenya, and Zambia, he noted that many programs failed because they focused on distributing money rather than creating sustainable wealth.
Asikhia proposed a paradigm shift towards a ‘Functional Business Model’, which emphasizes enterprises designed not only for profit but also for societal development, civic value, and sustainable prosperity. He explained that functional businesses should be integrated within communities to co-create wealth, generate livelihoods, and ensure equitable distribution of value. He stressed that Africa’s escape from poverty would not be achieved through donations but through the creation of businesses that share wealth, build capacity, and restore dignity.
Furthermore, Asikhia challenged universities to transition from theoretical to practical approaches, positioning themselves as hubs of innovation and enterprise. He cited findings from a survey of 581 SMEs in Nigeria, which showed that only 15 percent of the wealth created contributed to poverty alleviation. To reverse this trend, he recommended embedding practical entrepreneurship into every curriculum, formal registration of student start-ups in collaboration with the Corporate Affairs Commission, and transforming university-owned ventures into tools for community empowerment.