Oyedele Advocates for Expanded Access to Affordable Capital to Fuel Africa’s Infrastructure Development

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has urged the international community to significantly expand access to affordable long-term capital to finance infrastructure and development projects across Africa, noting that the continent’s growth ambitions remain constrained by high financing costs.

He made this appeal 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, according to a statement from the Ministry.

He highlighted that 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.

The minister noted that African countries incur what he described as a “prejudice premium” and “narrative cost” when seeking international financing for critical infrastructure projects, making capital mobilization more expensive than in many other regions.

He also identified currency volatility and what he termed a “stereotype tax” as additional burdens that elevate borrowing costs for African economies and restrict investment in energy and other strategic sectors.

He called on 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 advocated 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 observed 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.

He stressed that Africa’s energy transition must recognize the continent’s massive energy-access deficit and provide adequate financing for countries to meet development objectives alongside climate commitments.

Discussing Nigeria’s priorities, he stated that the Federal Government is focused on implementing policies and programs that reduce poverty, create economic opportunities, and accelerate shared prosperity.

He added that achieving these goals would require stronger international cooperation and a more inclusive global financing architecture that enables developing countries to mobilize the capital needed for infrastructure development and improved living standards.

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