Functional businesses key to tackling poverty – Caleb VC

The Vice-Chancellor of Caleb University, Prof. Olalekan Asikhia, has stated that Nigeria must embrace functional businesses, visionary leadership, integrity and strong institutions to overcome poverty and achieve sustainable prosperity.

Asikhia made the declaration while delivering Babcock University’s 57th Inaugural Lecture in Ilishan-Remo, where he presented a paper titled ‘It Is Time to Use Functional Businesses to Kill Poverty in Africa’.

According to a statement, the professor noted that Africa’s economic struggles persist not because the continent lacks potential, but because “what we need are functional businesses, visionary thinking, integrity and institutions that work.”

The event attracted scholars, policymakers, business leaders, diplomats and traditional rulers, with participants repeatedly applauding what many described as a “transformational” presentation.

Presenting poverty data across the continent, the Caleb VC warned that Africa risks deepening its poverty burden if it continues to rely on charity-based interventions.

He said 546 million Africans lived in poverty in 2022, adding that Nigeria holds “the largest share of global extreme poverty.” He projected that extreme poverty in Africa could hit 43.9 per cent by 2025, driven by income inequality, weak governance and policy inconsistencies.

Reviewing decades of interventions in countries, including Nigeria, Senegal, Egypt, Kenya and Zambia, Asikhia argued that many programmes failed because “Africa has spent too long sharing cash instead of deliberately building functional businesses capable of generating wealth.”

He noted that Nigeria alone had recorded more than 40 failed poverty alleviation schemes, largely undermined by corruption and policy discontinuity.

The professor proposed a ‘Functional Business Model’: enterprises designed not only for profit but also to deliver civic value, community development and sustainable prosperity.

“Africa will not escape poverty through donations but through the deliberate creation of businesses that share wealth, build capacity and give people dignity,” he said.

He explained that functional businesses embed themselves within communities, co-create wealth, create jobs and ensure equitable value distribution.

Asikhia challenged universities to shift from theory to practice by becoming hubs of innovation, entrepreneurship and community development.

Citing a survey of 581 SMEs in Nigeria, he said only 15 per cent of the wealth created contributed to poverty reduction. He urged universities to embed practical entrepreneurship in every curriculum, formally register student start-ups with the Corporate Affairs Commission, and transform campus ventures such as bakeries, agribusinesses and water factories into tools for community empowerment.

He also advocated the Social Entrepreneurship for Poverty Alleviation model to introduce students to community projects, grant writing, research and business incubation.

The lecture attracted the top management of Caleb University, including its Chancellor, Pro-Chancellor, Registrar and Deans. The Pro-Chancellor, Prof. Sunday Ajayi, received commendations for strengthening governance at the institution.

Babcock University’s new Vice-Chancellor, who hosted the event, described the lecture as “a gift to Africa”, adding that “the clarity, scholarship and practicality were exceptional… This lecture will influence thinking, policy and strategy in the months ahead.”

Asikhia also paid tribute to his wife, describing her as “my first audience, my honest critic and my greatest source of encouragement”, and acknowledged the support of their children. He praised Caleb University’s visitor, Dr Oladega Adebogun, for providing “the biggest platform of my career”.

Attendees applauded the lecture, including media professional Olawale Adekoya, who stated, “(Asikhia) is not merely teaching about poverty reduction; he is modelling it. His work is already changing communities and will change a continent.”