Former Vice-President, Prof. Yemi Osinbajo, has called for further debt forgiveness for African countries, emphasizing that the high cost of borrowing has plunged many nations, including Nigeria, into a severe debt crisis. He stressed that the massive debt burden limits Africa’s capacity to fund climate-positive investments crucial for driving a green economy.

Speaking at the 23rd Chief S.L. Edu Memorial Lecture organized by the Nigerian Conservation Foundation (NCF), Osinbajo delivered a lecture titled “Greening Africa’s Economies: Can Climate Positive Growth Deliver Prosperity?” where he highlighted Africa’s debt challenges and the need for structural financial reforms.

Africa’s total debt burden currently stands at $824 billion, as reported by the African Development Bank (AfDB). The bank also projected that Nigeria and other African nations will need about $10 billion annually for debt refinancing from 2025 to 2033, while debt servicing obligations could reach $74 billion by 2024.

Osinbajo argued that the high cost of borrowing has left many African nations heavily indebted to developed countries. However, he clarified that borrowing itself is not inherently negative. “The only way by which countries grow is by borrowing and implementing projects that would support such borrowing,” he stated.

He further urged developed nations and global financial institutions to consider debt relief, emphasizing the need for reforms within the global financial system to ease Africa’s debt crisis and support sustainable development.

“There must be a reform of the global financial system. Many of us have heard about the Bridgetown Initiative and the Capital Adequacy Framework, which proposes to strengthen multilateral development banks so that they can lend more to emerging economies,” Osinbajo said.

“There are technical solutions like recycling special drawing rights, blended financing, and risk mitigation strategies that can help reduce borrowing costs. Reducing the debt burden on African nations has become so important because many are severely indebted and spend too much today on debt repayments, leaving very little room for climate investments,” he added.

Osinbajo also stressed the importance of Africa leading the global drive toward net-zero carbon emissions by 2050, urging the continent to pursue industrialization without increasing carbon emissions.

He described Africa as uniquely positioned to lead a climate-friendly industrial revolution, especially through the processing of raw materials and leveraging its renewable energy resources.

“Africa can actually lower emissions by over 110 million tons of CO2 annually and generate about $25 trillion in additional revenue, creating about 24,000 direct jobs and another 215,000 indirect jobs in related industries,” he said.

The former Vice-President noted that addressing energy poverty remains critical, pointing out that over 600 million Africans still lack access to electricity. He called for a focus on renewable energy investments, emphasizing Africa’s potential as a global powerhouse in the sector.

“By pursuing an industrialization pathway using renewable energy, of which we have 60% of the world’s potential, we can actually develop the first green industrial civilization,” he added.

Osinbajo urged African leaders to unite and speak with one voice to influence global financial policies, advocating for stronger and deeper capital markets and the development of African financial institutions to promote climate-friendly investments.

He also paid tribute to the late Shafi Lawal Edu, founder of the Nigerian Conservation Foundation, describing him as an “undisputed icon of global environmental conservation.” “His legacy reminds us that the decisions we make now will determine the future of our planet,” he concluded.

Justice RIB Adebiyi, Chairperson of the National Executive Council of NCF, emphasized that the annual lecture series has consistently highlighted the need for building climate-resilient communities in Nigeria and Africa at large.

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