Nigeria's Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, has called for affordable capital to finance Africa's infrastructure. He made this call at the United Nations Dialogue on Solutions to Climate Finance in New York, held on the margins of the 81st Session of the United Nations General Assembly. Oyedele stated that Africa's development ambitions, particularly its energy needs, were constrained by high financing costs, currency risks, and limited access to long-term capital.
Oyedele described the situation as a "prejudice premium" and "narrative cost" affecting Africa's efforts to mobilise funds for critical infrastructure. He also identified currency risks and what he called "stereotype tax" as additional burdens confronting African countries seeking capital for energy and development projects. According to Oyedele, Africa's relatively low contribution to global carbon emissions had not shielded the continent from higher financing costs.
The Minister urged the international community to adopt simpler and more affordable financing arrangements that reflected the development realities of developing countries. He called for increased investment in gas and other transition energy sources, particularly in Africa, to expand access to reliable and affordable energy while addressing global energy poverty. This, he said, would also diversify global energy supplies and reduce concentration risks.
Oyedele stressed that Africa's energy transition must reflect the continent's significant energy-access deficit. He said that greater investment was needed to enable African countries to meet development needs while pursuing practical transitions to cleaner energy sources. The Minister's comments come amid disruptions affecting the Gulf region, highlighting the importance of diversification.
For Nigeria, Oyedele said the immediate priority was implementing policies and programmes to reduce poverty and expand economic opportunities. He said that such measures would accelerate the distribution of shared prosperity among Nigerians. Achieving these objectives, he noted, would require stronger international cooperation and a financing framework supportive of developing countries.
Oyedele emphasized that a supportive financing framework would enable countries to mobilise the capital needed to develop infrastructure and improve citizens' livelihoods. He made these remarks in a statement issued by the Head, Information and Public Relations of the Ministry, Mrs Efe Ovuakporie. The Minister's call for affordable capital underscores the challenges faced by African countries in accessing financing for development projects.
The issue of affordable capital for Africa's infrastructure development is a pressing concern, with many countries struggling to access long-term capital. Oyedele's advocacy for a more supportive financing framework is expected to resonate with development partners and international organisations.
Key points
- Nigeria's Finance Minister, Taiwo Oyedele, calls for affordable capital to finance Africa's infrastructure.
- Oyedele cites high financing costs, currency risks, and limited access to long-term capital as major constraints.
- He urges the international community to adopt simpler and more affordable financing arrangements for developing countries.
