Urban youth in Lagos, Nigeria face significant barriers to employment, exacerbated by economic instability and limited access to formal financial services. A mixed-methods approach combining quantitative surveys with qualitative interviews was employed, targeting 150 young entrepreneurs who received microfinance support over the last year. Microfinance recipients reported an average monthly income increase of 30% compared to pre-financing levels and demonstrated significant improvements in financial management skills (65%) and business confidence (72%). The study found that while microfinance significantly enhanced the financial stability and entrepreneurial capabilities of urban youth, there is room for improvement in policy support and access to broader financial services. Policymakers should consider expanding microfinance programmes to include more diverse funding options and provide targeted training on market dynamics and risk management. Microfinance, Urban Youth Employment, Lagos, Nigeria, Empowerment Study