Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has called on the international community to expand access to affordable, long-term financing for infrastructure and development projects across Africa.
Oyedele made the call while speaking 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.
He said Africa’s development ambitions, particularly in the energy sector, are being held back by high financing costs, currency risks and limited access to affordable long-term capital.
The minister noted that despite Africa’s relatively low contribution to global carbon emissions, countries on the continent face additional challenges when trying to secure financing for major infrastructure projects.
He described some of these challenges as a “prejudice premium” and “narrative cost”, while also identifying currency risk and what he called a “stereotype tax” as factors that increase the cost of raising funds for energy and other development projects.
Oyedele called for a change in the global approach to climate finance, arguing that developing countries should have simpler access to affordable capital and financing arrangements that take into account their economic and development realities.
He also urged greater international investment in gas and other transition energy sources, particularly in Africa, saying this would help expand access to reliable and affordable energy while addressing global energy poverty.
According to him, increased investment in Africa’s energy sector could also diversify global energy supplies and reduce concentration risks, especially amid disruptions affecting the Gulf region.
The minister stressed that Africa’s energy transition must reflect the continent’s significant energy-access deficit. He said greater investment would be required to allow African countries to meet their development needs while pursuing a practical transition towards cleaner energy sources.
On Nigeria, Oyedele said the immediate priority should be to develop and implement policies and programmes aimed at reducing poverty, expanding economic opportunities and accelerating the distribution of shared prosperity.
He added that achieving these objectives would require stronger international cooperation and a financing framework that allows developing countries to mobilise the capital needed to invest in infrastructure and improve living conditions.
