The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has called on the international community to significantly expand access to affordable long-term capital to finance infrastructure and development projects across Africa, saying the continent’s growth ambitions remain constrained by the high cost of financing.
Oyedele made the call while addressing the United Nations Dialogue on Solutions to Climate Finance on the sidelines of the 81st Session of the United Nations General Assembly (UNGA) in New York, a statement by the Ministry has said.
He said Africa’s infrastructure and energy development needs continue to face major financing hurdles, including high interest rates, currency risks and limited access to affordable long-term funding, despite the continent contributing only a small share of global carbon emissions.
According to the minister, African countries pay what he described as a “prejudice premium” and “narrative cost” when seeking international financing for critical infrastructure projects, making it more expensive to mobilise capital than in many other regions.
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Oyedele also identified currency volatility and what he termed a “stereotype tax” as additional burdens that raise borrowing costs for African economies and limit investment in energy and other strategic sectors.
He urged development partners and global financial institutions to adopt a new approach to climate finance by simplifying access to affordable funding and designing financing mechanisms that reflect the development realities of emerging economies.
The minister further called for increased investment in natural gas and other transition energy sources across Africa, arguing that expanding reliable and affordable energy access is essential to tackling energy poverty while supporting a gradual shift to cleaner energy.
He noted that greater investment in Africa’s energy sector would not only accelerate economic development across the continent but also help diversify global energy supply and reduce concentration risks arising from disruptions in major energy-producing regions.
Oyedele stressed that Africa’s energy transition must recognise the continent’s huge energy-access deficit and provide adequate financing for countries to meet development objectives alongside climate commitments.
Speaking on Nigeria’s priorities, he said the Federal Government is focused on implementing policies and programmes that reduce poverty, create economic opportunities and accelerate shared prosperity.
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He added that achieving these goals would require stronger international cooperation and a more inclusive global financing architecture that enables developing countries to mobilise the capital needed for infrastructure development and improved living standards.