Nigeria has formally proposed the creation of a $10 billion African Union (AU) Peace Fund to secure the bloc’s financial autonomy over the next decade. Taiwo Oyedele, the Nigerian Minister of Finance, presented the initiative at the 27th Extraordinary Session of the AU Executive Council in Accra, Ghana. According to a statement from the Ministry of Finance, the proposal aims to reduce the continent's dependence on external development assistance by establishing a robust, internally managed funding mechanism. Nairametrics reported the details of the proposal and the minister's address.
Oyedele outlined that the fund would be capitalized through levies on member states, philanthropic contributions, and African capital. He specified that investments would be managed according to sovereign wealth fund principles to generate sustainable returns for peace initiatives. This $10 billion target exceeds the $1 billion figure currently under consideration by the AU. However, Nigeria indicated it remains open to the lower initial target if it facilitates quicker implementation. The minister emphasized that the fund’s principal should not be drawn down, advocating for an interest-only rule until a sustainable replenishment mechanism is in place.
The proposal addresses a critical funding gap within the African Union. Oyedele highlighted that member states currently finance only 25% of the organization’s budget and contribute just 4% of programme funding, falling short of the 75% target. He argued that declining global development assistance makes domestic resource mobilization increasingly urgent. To support this, he called on technical experts from the Forum of Finance Ministers (F15) to validate projections that could raise member state contributions to $779 million by 2031. He stressed that these projections must be assessed against the fiscal constraints facing individual countries.
Beyond capitalization, the Nigerian minister demanded structural reforms to ensure institutional efficiency. He identified 29 areas of duplication within the AU that could cost the organization up to $36 million annually. Oyedele urged the AU Commission to eliminate these redundancies and implement outstanding audit recommendations. He also suggested exploring additional revenue sources, such as income from AU-owned properties. The minister insisted that the Accra meeting produce a concrete implementation work plan rather than broad commitments, asking the Commission to report progress at the 2027 mid-year session.