By Abiodun Folarin
WorldStage– The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has called for greater access to affordable, long term capital to enable African countries finance critical infrastructure and accelerate economic development.
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.
He said Africa’s development ambitions, particularly in the energy sector, remained constrained by high financing costs, currency risks and limited access to affordable long-term capital.
According to him, despite Africa’s relatively low contribution to global carbon emissions, the continent continues to face additional costs in accessing development finance, including what he described as a “prejudice premium” and “narrative cost.”
He also identified currency risks and what he termed “stereotype tax” as further burdens limiting African countries’ ability to mobilise capital for critical infrastructure and energy projects.
Oyedele therefore urged the international community to rethink the existing approach to climate finance by simplifying access to affordable funding for developing countries and designing financing arrangements that reflect their economic and development realities.
He also called for increased investment in natural gas and other transition energy sources, particularly in Africa, to expand access to reliable and affordable energy and address the continent’s energy poverty.
The Minister said increased investment in Africa’s energy sector would not only support development but also help diversify global energy supplies and reduce concentration risks amid disruptions affecting the Gulf region.
He stressed that Africa’s energy transition must be anchored on the continent’s significant energy-access deficit, arguing that countries need increased investment to meet development requirements while pursuing a practical transition towards cleaner energy sources.
On Nigeria, Oyedele said the immediate priority of the government was to implement policies and programmes capable of reducing poverty, expanding economic opportunities and accelerating the distribution of shared prosperity.
He said achieving these objectives would require stronger international cooperation and a financing framework that would enable developing countries to mobilise the capital needed to invest in infrastructure and improve living standards.
