The Minister of Finance and Coordinating Minister for the Economy, Taiwo Oyedele, has called for a new approach to financing development in Africa, urging the international community to provide affordable and long-term capital for infrastructure and energy projects.
Oyedele made the call at the United Nations Dialogue on Solutions to Climate Finance, held in New York on the sidelines of the 81st Session of the United Nations General Assembly.
He said high borrowing costs, currency risks and limited access to long-term financing were restricting Africa’s ability to fund critical development projects.
According to a statement by the ministry’s Head of Information and Public Relations, Efe Ovuakporie, Oyedele said the financing challenge was particularly severe in the energy sector, where huge investments were needed to close Africa’s electricity and energy-access gap.
The minister noted that Africa contributes relatively little to global carbon emissions but continues to face additional costs when seeking financing for infrastructure.
He described these challenges as a “prejudice premium” and “narrative cost,” while also identifying currency risks and what he called a “stereotype tax” as factors that increase the cost of raising capital for African countries.
Oyedele urged a rethink of the global climate-finance system, saying funding arrangements should take into account the development realities of developing countries and provide simpler access to affordable financing.
He also called for greater investment in natural gas and other transition energy sources, arguing that Africa requires reliable and affordable energy to reduce poverty and support economic growth.
According to him, increased investment in Africa’s energy sector would help address energy poverty, diversify global energy supplies and reduce concentration risks, especially amid disruptions affecting the Gulf region.
Oyedele said Africa’s energy transition should be guided by the continent’s development needs, given its large energy-access deficit. He stressed the need for more investment to expand electricity and other energy infrastructure while gradually moving towards cleaner energy sources.
The minister further urged the global climate-finance framework to recognise the different circumstances of developing countries rather than impose financing conditions that could limit their economic development.
On Nigeria, Oyedele said the government’s immediate priority was to implement policies and programmes that would reduce poverty, expand economic opportunities and accelerate the sharing of prosperity.
He added that achieving these goals would require stronger international cooperation and a financing framework that allows developing countries to mobilise the capital needed to build infrastructure and improve living standards.
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