Oyedele Calls for Affordable Capital to Finance Africa’s Infrastructure

NIgeria’s Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has called on the international community to increase the availability of affordable, long-term financing for infrastructure and development projects across Africa.

Oyedele made the call while addressing the United Nations Dialogue on Solutions to Climate Finance on the margins of the 81st Session of the United Nations General Assembly in New York.

The minister said Africa’s development ambitions, particularly in the energy sector, remain constrained by high financing costs, currency risks and limited access to affordable long-term capital.

According to Oyedele, African countries also face what he described as a “prejudice premium” and “narrative cost” when seeking financing for critical infrastructure, despite the continent’s relatively low contribution to global carbon emissions.

He identified currency risk and what he termed a “stereotype tax” as additional challenges that increase the cost of raising capital for energy and other development projects.

Oyedele therefore advocated a strategic shift in the global approach to climate finance, including simpler access to affordable capital for developing countries and financing arrangements that better reflect their development realities.

He also urged increased investment in gas and other transition energy sources in Africa, saying such investments could expand access to reliable and affordable energy while helping to address global energy poverty.

The minister said greater investment in Africa’s energy sector could also diversify global energy supplies and reduce concentration risks, particularly amid disruptions affecting the Gulf region.

He stressed that Africa’s energy transition must take into account the continent’s significant energy-access deficit. He called for increased investment that would enable African countries to meet their development needs while pursuing a practical transition towards cleaner energy sources.

For Nigeria, Oyedele said the immediate priority was 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 standards.