Finance minister Taiwo Oyedele has called for affordable capital to finance Africa’s infrastructure. In a statement on Wednesday, Mr Oyedele made the call at the United Nations Dialogue on Solutions to Climate Finance in New York.
The dialogue was held on the margins of the 81st Session of the United Nations General Assembly. He said that Africa’s development ambitions, particularly its energy needs, were constrained by high financing costs, currency risks and limited access to long-term capital.
The minister said that Africa’s relatively low contribution to global carbon emissions had not shielded the continent from higher financing costs.
Mr 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 a “stereotype tax” as additional burdens confronting African countries seeking capital for energy and development projects.
Mr Oyedele urged the international community to adopt simpler, more affordable financing arrangements that reflect the development realities of developing countries.
He also called for increased investment in gas and other transition energy sources, particularly in Africa. According to him, such investment will expand access to reliable and affordable energy while helping address global energy poverty.
He said that increased investment in Africa’s energy sector would also diversify global energy supplies and reduce concentration risks.
Mr Oyedele said that such diversification was particularly important amid disruptions affecting the Gulf region. The minister restated 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.
For Nigeria, Mr 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.
Mr Oyedele said that achieving the objectives would require stronger international cooperation and a financing framework supportive of developing countries. He said such a framework would enable countries mobilise the capital needed to develop infrastructure and improve citizens’ livelihoods.
(NAN)
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