Former Vice-President, Prof. Yemi Osinbajo, has made a strong case for enhanced debt forgiveness for African nations, highlighting the crippling impact of high borrowing costs that have driven many countries, including Nigeria, into a deep debt crisis. He underscored that this heavy debt burden significantly hampers Africa’s ability to invest in climate-positive initiatives essential for advancing a green economy.
Delivering a lecture titled “Greening Africa’s Economies: Can Climate Positive Growth Deliver Prosperity?” at the 23rd Chief S.L. Edu Memorial Lecture organized by the Nigerian Conservation Foundation (NCF), Osinbajo addressed Africa’s debt challenges and the urgent need for structural financial reforms.
According to the African Development Bank (AfDB), Africa’s total debt burden currently stands at $824 billion. The bank further projects that Nigeria and other African nations will require approximately $10 billion annually for debt refinancing between 2025 and 2033, while debt servicing obligations could reach $74 billion by 2024.
Osinbajo argued that exorbitant borrowing costs have left many African nations deeply indebted to developed countries. However, he clarified that borrowing itself is not inherently detrimental. “The only way by which countries grow is by borrowing and implementing projects that would support such borrowing,” he noted.
He called on developed nations and global financial institutions to prioritize debt relief and implement reforms within the global financial system to alleviate Africa’s debt crisis and foster sustainable development. “There must be a reform of the global financial system. Many of us are aware of initiatives like the Bridgetown Initiative and the Capital Adequacy Framework, which propose strengthening multilateral development banks to enable increased lending to emerging economies,” he said.
Osinbajo further emphasized the importance of technical solutions such as recycling special drawing rights, blended financing, and risk mitigation strategies to reduce borrowing costs. He warned that the high debt burden leaves African nations with limited fiscal space for essential climate investments. “Reducing the debt burden on African nations has become critical as many spend an excessive proportion of their resources on debt repayments, leaving minimal room for climate investments,” he added.
He also highlighted Africa’s potential to lead the global drive toward achieving net-zero carbon emissions by 2050, advocating for an industrialization pathway that does not exacerbate carbon emissions. “Africa is uniquely positioned to spearhead a climate-friendly industrial revolution, particularly by processing raw materials and leveraging its renewable energy resources,” Osinbajo stated.
He projected that Africa could lower emissions by over 110 million tons of CO2 annually, while generating approximately $25 trillion in additional revenue and creating around 24,000 direct jobs and 215,000 indirect jobs in related industries.
Addressing energy poverty, Osinbajo stressed that over 600 million Africans still lack access to electricity, making renewable energy investments a critical priority. “By pursuing industrialization powered by renewable energy—of which Africa holds 60% of the world’s potential—the continent can pioneer the first green industrial civilization,” he asserted.
Osinbajo urged African leaders to unite and present a collective voice to influence global financial policies. He advocated for the development of stronger capital markets and robust African financial institutions to drive climate-positive investments.
Paying tribute to the late Shafi Lawal Edu, founder of the Nigerian Conservation Foundation, Osinbajo described him as an “undisputed icon of global environmental conservation.” He added, “His legacy serves as a reminder that the choices we make today will shape the future of our planet.”
Justice R.I.B. Adebiyi, Chairperson of the National Executive Council of the NCF, also stressed the importance of the lecture series, highlighting its role in emphasizing the need to build climate-resilient communities across Nigeria and Africa.
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