Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has raised concerns over mounting global debt pressures, warning that nearly half of low-income countries are either in debt distress or at high risk.
Edun spoke at the ongoing Technical Group Meeting of the Group of 24 (G-24) in Abuja, where he highlighted the growing strain debt servicing is placing on developing economies.
Nigeria’s Debt Profile Under Scrutiny
Although Nigeria is classified by the World Bank as a lower-middle-income country for 2024–2026, its public debt has continued to rise, reaching an estimated $100 billion, with a debt service-to-revenue ratio of about 47 percent in 2025.
Edun noted that total annual debt servicing payments across the Global South now exceed inflows from Overseas Development Assistance (ODA) and Foreign Direct Investment (FDI), underscoring worsening fiscal constraints.
“The gathering is an opportunity to reshape the development trajectory of the Global South at a time when global risks are converging faster than institutions can respond,” he stated.
He further revealed that about 25 percent of Emerging and Developing Economies (EMDEs) have lost access to international capital markets, making domestic revenue mobilisation increasingly critical.
Cardoso Flags Costly Cross-Border Payments
Also speaking at the meeting, Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, described cross-border payments among developing nations as slow, expensive, and fragmented.
According to him, global remittance corridors still cost over 6 percent, with settlement delays lasting several days, while compliance requirements continue to exclude Micro, Small, and Medium Enterprises (MSMEs).
“Improving cross-border payments is not simply a technical reform; it is a macroeconomic and development priority,” Cardoso said.
He emphasised that digital transformation of payment systems could lower costs, speed up settlements, and improve participation in global trade.
Fiscal Space Shrinking for EMDEs
Director and Head of the G-24 Secretariat, Iyabo Masha, noted that member countries face constrained fiscal space amid heightened global uncertainty and structural economic shifts.
She stressed that many developing economies must now focus on restoring development momentum, maintaining macroeconomic stability, and financing long-term transformation in a volatile global environment.
