Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has called for changes to the global financing system to make affordable, long-term capital more accessible for infrastructure and energy projects across Africa.
Oyedele made the call at the United Nations Dialogue on Solutions to Climate Finance, held on the sidelines of the 81st Session of the United Nations General Assembly in New York.
According to a statement by the Head of Information and Public Relations at the Ministry of Finance, Efe Ovuakporie, the minister said high borrowing costs, currency risks and limited access to long-term funding were slowing Africa’s development.
He said the financing challenge was particularly serious in the energy sector, where substantial investment is needed to address the continent’s large energy-access gap.
Oyedele said Africa continues to face additional costs when seeking funding for major infrastructure projects despite contributing relatively little to global carbon emissions.
He described these challenges as a “prejudice premium” and “narrative cost”, while also referring to currency risks and a “stereotype tax” affecting African countries seeking investment.
The minister called for a rethink of climate-finance arrangements to ensure they reflect the economic realities of developing countries and provide easier access to affordable funding.
Energy investment
Oyedele also called for increased investment in natural gas and other transition energy sources, arguing that Africa requires dependable and affordable energy to reduce poverty and support economic growth.
He said greater investment in the continent’s energy sector could help address energy poverty while also diversifying global energy supplies.
According to him, diversification is particularly important amid disruptions affecting the Gulf region.
Oyedele said Africa’s energy transition must take into account the continent’s development requirements and significant energy-access deficit.
He called for increased investment in electricity and other energy infrastructure while countries work towards cleaner energy sources.
The minister also argued that global climate-finance arrangements should recognise the different circumstances of developing countries rather than introduce financing conditions that could make development more difficult.
Nigeria’s priorities
For Nigeria, Oyedele said the immediate focus should be on policies and programmes that reduce poverty, create economic opportunities and broaden shared prosperity.
He said achieving these goals would require stronger international cooperation and a financing framework that allows developing countries to mobilise the funds needed for infrastructure and improvements in living standards.
Source: VANGUARD
