The Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, has called for a fundamental shift in how Africa’s development is financed, urging the global community to provide affordable, long-term capital for infrastructure and energy projects.
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 (UNGA) 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 are holding back Africa’s development.
He noted that the challenge is most severe in the energy sector, where huge investments are needed to close Africa’s energy-access gap.
Despite contributing minimally to global carbon emissions, Africa continues to face what he described as a “prejudice premium” and “narrative cost” when seeking finance for critical infrastructure, Oyedele said.
He also identified currency risks and a “stereotype tax” as additional burdens on African countries trying to raise capital for development projects.
Oyedele therefore called for a rethink of climate finance, with arrangements that reflect the realities of developing economies and offer simpler access to affordable funding.
The minister advocated for increased investment in natural gas and other transitional energy sources, arguing that Africa needs reliable and affordable energy to fight poverty and drive economic growth.
He said boosting investment in Africa’s energy sector would not only address energy poverty but also diversify global energy supply and reduce concentration risks, especially amid disruptions in the Gulf region.
Oyedele stressed that Africa’s energy transition must be anchored on its development needs, given the continent’s large energy deficit. He said African nations require more investment to expand electricity and other energy infrastructure while pursuing a practical shift to cleaner sources.
He added that the global climate finance framework should accommodate the peculiar circumstances of developing countries rather than impose conditions that further constrain their growth.
For Nigeria, Oyedele said the immediate priority is to design and implement policies that reduce poverty, expand economic opportunities and accelerate shared prosperity.
He noted that achieving these goals will require stronger international cooperation and a financing system that enables developing countries to mobilise capital for infrastructure and improved living standards.
