Nigeria Proposes $10 Billion African Union Peace Fund

Nigeria has proposed a $10 billion African Union Peace Fund over the next decade, urging African countries to strengthen domestic financing and reduce the continental body’s dependence on external assistance.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, presented the proposal at the 27th Extraordinary Session of the AU Executive Council on Financing the Union in Accra, Ghana.

Oyedele said Nigeria supported the proposed AU financing option but insisted that its implementation must be guided by three principles: discipline, efficiency and leverage.

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On the Peace Fund, he reaffirmed Nigeria’s openness to the proposed $1bn target but called for a more ambitious $10bn fund over 10 years, financed through member state levies, philanthropy and African capital.

He proposed that the fund be managed along sovereign wealth fund principles, with investment returns providing sustainable financing for peace initiatives across the continent.

The minister also called for the retention of the interest-only rule until a sustainable replenishment mechanism was established, cautioning against depleting the fund’s principal. He urged member states with outstanding contributions to fulfil their commitments within an agreed timeframe.

Addressing the AU’s funding challenges, Oyedele noted that member states currently finance only 25 per cent of the organisation’s budget and contribute just four per cent of programme funding, against a target of 75 per cent.

He said declining development assistance had made stronger domestic financing increasingly urgent.

On fiscal discipline, the minister advocated fewer, high-impact priorities, a credible medium-term fiscal framework and performance-linked spending ceilings.

He also urged technical experts of the Forum of Finance Ministers, known as F15, to validate projections that could raise member states’ contributions to $779m by 2031, nearly four times the current ceiling, while considering the fiscal constraints facing countries across the continent.

Oyedele further called for the elimination of 29 identified areas of institutional duplication, estimated to cost the Union up to $36m. He also recommended implementing audit findings and generating revenue from AU-owned properties.

The minister warned that Africa’s political sovereignty could be undermined without financial independence, stressing that external funding dependence could limit the continent’s ability to determine its priorities.

He called for the Accra meeting to produce a concrete implementation work plan, including a directive for the AU Commission to address institutional inefficiencies and report progress at the 2027 mid-year session.

He also urged F15 experts to fully cost the proposed financing option and explore alternative funding arrangements, while the Commission develops sustainable mechanisms for replenishing the Peace Fund.

Oyedele reaffirmed Nigeria’s commitment to reforms promoting fair burden-sharing, responsible financial management and a financially sustainable African Union.

Author

Jimisayo Opanuga

Jimisayo Opanuga is a web writer in the Digital Department at News Central TV, where she covers African and international stories. Her reporting focuses on social issues, health, justice, and the environment, alongside general-interest news. She is passionate about telling stories that inform the public and give voice to underreported communities.