Oyedele Calls for Affordable Capital to Close Africa’s Infrastructure Gap

The Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, has called for more affordable capital to finance infrastructure development across Africa.

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

This was contained in a statement issued on Wednesday by the Head, Information and Public Relations of the Ministry, Mrs Efe Ovuakporie.

Oyedele said Africa’s development ambitions, particularly its energy needs, were being constrained by high financing costs, currency risks and limited access to long-term capital.

He noted that Africa’s relatively low contribution to global carbon emissions had not shielded the continent from higher financing costs.

The minister 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 “stereotype tax” as additional burdens confronting African countries seeking capital for energy and development projects.

Oyedele urged the international community to adopt simpler and more affordable financing arrangements that reflected 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 increased investment in Africa’s energy sector would also diversify global energy supplies and reduce concentration risks.

Oyedele said such diversification was particularly important amid disruptions affecting the Gulf region.

The minister stressed that Africa’s energy transition must reflect the continent’s significant energy-access deficit.

He said greater investment was needed to enable African countries to meet their development needs while pursuing practical transitions to cleaner energy sources.

For Nigeria, Oyedele said the immediate priority was implementing policies and programmes to reduce poverty and expand economic opportunities.

He said such measures would accelerate the distribution of shared prosperity among Nigerians.

Oyedele said achieving these objectives would require stronger international cooperation and a financing framework supportive of developing countries.

He said such a framework would enable countries to mobilise the capital needed to develop infrastructure and improve citizens’ livelihoods.