Business
Oyedele: Africa’s economies must reform financial systems
Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has called for urgent reforms to the global financial architecture, saying Africa continues to face structural barriers that limit access to affordable capital and long-term industrial growth.
Speaking on the sidelines of the Africa Forward Summit in Nairobi, Mr Oyedele said African economies are still burdened by what he described as a “prejudice premium” that inflates borrowing costs and discourages long-term investment into the continent.
In a post shared on his official X handle on Wednesday, he said the current international financial system constrains Africa’s industrialisation ambitions through high borrowing costs, restrictive financing terms, limited access to long-term capital, and inadequate funding for productivity and value addition.
Beyond global reforms, the minister stressed the need for African countries to strengthen domestic systems by improving governance, ensuring policy stability, enforcing contracts, and deepening regional integration.
He warned that fragmented markets across the continent weaken competitiveness in a global economy that increasingly rewards scale and integration.
Mr Oyedele also urged African governments to mobilise domestic savings, including pension funds, while creating stronger pathways for private capital to flow into productive sectors.
ALSO READ: At Africa Forward Summit, Tinubu calls for reform of global financial architecture
He noted that with more than $120 trillion in global private capital seeking investment opportunities, Africa must position itself as a competitive investment destination rather than remain primarily a recipient of development assistance.
According to him, financing priorities must shift from raw material extraction and crisis response toward value addition, infrastructure development, skills, technology, innovation and regional value chains.
He added that Africa’s long-term growth will depend on productivity, integration and value creation rather than dependency.
PREMIUM TIMES earlier reported that President Bola Tinubu, at the Africa Forward Summit in Nairobi, said the growing economic relationship between Nigeria and France must translate into tangible development outcomes, as trade between both countries reached $4.7 billion in 2025.
Fidelity Bank Plc has redeemed its 5-year $400 million Senior Unsecured Notes at maturity, reaffirming its commitment to meeting investor obligations and reinforcing its track record in the international debt capital markets.
Issued on 28 October 2021, the 5-year Eurobond matured on 28 October 2026 and carried an annual coupon of 7.625 per cent, payable semi-annually. Fidelity Bank met all scheduled coupon payments throughout the life of the instrument and has now fulfilled its final repayment obligation in full, covering both principal and accrued interest.
The redemption was funded from internally generated liquidity as part of the bank’s forward-looking liquidity management strategy. Through a dedicated sinking fund, Fidelity Bank progressively provided for the maturing obligation, enabling the bank to meet its commitment while maintaining business-as-usual operations and compliance with applicable regulatory liquidity requirements.
Commenting on the development, Fidelity Bank Plc’s Managing Director and Chief Executive Officer, Nneka Onyeali-Ikpe, said the successful redemption reflected the bank’s disciplined approach to financial management and its commitment to delivering on its obligations.
“This successful redemption demonstrates the strength of our franchise, the discipline of our balance sheet management and our commitment to honouring our obligations to investors and other stakeholders. We anticipated this maturity from the outset and planned accordingly, which reflects our commitment to responsible financial management,” Mrs Onyeali-Ikpe said.
The redemption further strengthens Fidelity Bank’s record in the international debt capital markets. The 2021 issuance marked the bank’s third Eurobond transaction, following earlier issuances in 2013 and 2017, in which the bank raised $300 million and $400 million, respectively. The 2021 offer attracted investor orders exceeding US$700 million, reflecting strong demand for the bank’s international debt offering.
READ ALSO: World Bank projects 23% rise in global commodity prices in 2026
The successful Eurobond redemption follows the completion of Fidelity Bank’s recapitalisation programme ahead of the regulatory deadline. The bank’s capital-raising efforts increased its eligible regulatory capital to approximately N533 billion, exceeding the N500 billion minimum capital requirement for banks with international authorisation.
The completion of these milestones underscores Fidelity Bank’s strong capital position, prudent liquidity management and disciplined approach to financial execution. It also reinforces the Bank’s capacity to meet its financial obligations while pursuing its strategic growth objectives across domestic and international markets.
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