Nigeria proposes $10 billion Peace Fund for African Union

Nigeria has proposed the establishment of a $10 billion African Union (AU) Peace Fund over the next decade to strengthen the AU's financial independence and reduce its reliance on external funding. Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, made this proposal at the 27th Extraordinary Session of the AU Executive Council on Financing the Union in Accra, Ghana.

The fund is suggested to be financed through levies on member states, philanthropy, and African capital, with investments managed under sovereign wealth fund principles. This proposal exceeds the current $1 billion target for the Peace Fund.

Oyedele pointed out that member states currently finance only 25% of the AU's budget and contribute just 4% of program funding, highlighting the urgent need for improved domestic resource mobilization. He also called for the elimination of 29 areas of duplication within the AU, which could save up to $36 million, and urged member states to fulfill their financial commitments promptly.

Oyedele emphasized the need for a concrete implementation work plan from the Accra meeting.