This paper examines youth livelihood initiatives in urban Lagos and Cape Town districts to assess their impact on economic diversification in Nigeria. The study employed a qualitative approach to gather data from interviews with policymakers, community leaders, and representatives of youth organizations in both cities. A key finding is that urban Lagos has seen a higher proportion (30%) of successful livelihood initiatives compared to Cape Town (20%), indicating a more robust ecosystem for economic diversification among young people. Both cities benefit from diverse and inclusive youth-led initiatives, but the scale and impact are notably different between them. Policy recommendations include prioritising infrastructure development in Lagos to support successful initiatives and fostering collaboration between urban centers to share best practices.