At UNGA, Oyedele Canvasses Simpler Access to Affordable Capital for Developing Countries

The Nigerian Minister of Finance, Taiwo Oyedele, has called for a strategic shift in climate finance, emphasizing simpler access to affordable capital for developing countries, particularly Africa. Speaking at the United Nations Dialogue on Solutions to Climate Finance during the 81st Session of the United Nations General Assembly (UNGA) in New York, Oyedele highlighted the challenges faced by Africa, such as high financing costs, currency risks, and a perceived "prejudice premium" and "narrative cost" in mobilizing financing for critical infrastructure.

Oyedele pointed out that despite Africa's low contribution to global carbon emissions, the continent continues to grapple with a "currency risk" and a "stereotype tax" when seeking to raise capital for essential energy and other development assets. He urged the international community to boost investment in gas and other transition energy sources, particularly in Africa, to enhance access to affordable and reliable energy and mitigate global energy poverty.

For Nigeria, Oyedele emphasized that the primary focus should be on crafting policies and programs to alleviate poverty, create economic opportunities, and promote shared prosperity. He stressed that achieving these goals necessitates enhanced international cooperation and a financing framework that supports developing countries in mobilizing the necessary capital for infrastructure development and transitioning towards cleaner energy sources.