Oyedele Seeks Cheaper Capital for Africa

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has called for greater access to affordable, long-term capital to finance infrastructure and development projects across Africa.

Oyedele said high financing costs, currency risks and limited access to affordable capital were constraining the continent’s development ambitions, particularly in the energy sector.

He spoke at the United Nations Dialogue on Solutions to Climate Finance on the sidelines of the 81st Session of the United Nations General Assembly in New York, according to the Federal Ministry of Finance.

The minister argued that Africa faced additional financing burdens despite its relatively low contribution to global carbon emissions.

He described some of these burdens as a “prejudice premium” and “narrative cost”, while also referring to currency risks and what he called a “stereotype tax” affecting African borrowers seeking funds for critical infrastructure.

Minister Seeks Change in Climate Finance

Oyedele called for a shift in the global approach to climate finance, including simpler access to affordable funding for developing countries.

He also said financing arrangements should better reflect African countries’ economic and development realities.

The minister said the challenge was particularly serious in the energy sector, where greater investment is needed to expand access to reliable, affordable power and support broader economic development.

He also urged the international community to increase investment in gas and other transition energy sources in Africa.

According to Oyedele, such investments could expand energy access, address energy poverty, and diversify global energy supplies, particularly amid disruptions affecting the Gulf region.

Africa’s Energy Transition

Oyedele said Africa’s move toward cleaner energy must account for the continent’s significant energy-access deficit.

He argued that greater financing would allow African countries to expand infrastructure while pursuing a practical transition to cleaner energy sources.

“The Minister stressed that Africa’s energy transition must take account of the continent’s significant energy-access deficit, noting the need for greater investment to enable countries to meet their development needs while pursuing a practical transition to cleaner energy sources,” the ministry said.

For Nigeria, Oyedele said the immediate priority was to implement policies and programmes designed to reduce poverty, expand economic opportunities and accelerate the distribution of shared prosperity.

He said achieving those objectives would require stronger international cooperation and a financing framework that enables developing countries to mobilise the capital needed for infrastructure development.

“Achieving these objectives, the minister said, would require stronger international cooperation and a financing framework that enables developing countries to mobilise the capital required to invest in infrastructure and improve the lives of their people.”