Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has warned that around 50 percent of low-income countries are in or nearing debt distress, calling for urgent policy responses. While Nigeria is classified as a lower-middle-income country, its public debt has risen sharply, reaching an estimated $100 billion, with a debt service-to-revenue ratio projected at 47 percent in 2025.
Speaking at the ongoing Technical Group Meeting of the Group of 24 Nations (G-24) in Abuja, Edun noted that debt servicing has become a major burden for many developing countries. “Total annual debt servicing payments by debtor countries in the Global South far exceed inflows from Overseas Development Assistance and Foreign Direct Investments from the Global North,” he said.
He added that 25 percent of emerging and developing economies (EMDEs) have lost access to international capital markets, making domestic revenue generation increasingly vital.
Central Bank of Nigeria Governor Olayemi Cardoso highlighted inefficiencies in cross-border payments, calling them “too slow, too costly, and too fragmented,” with global remittance costs exceeding six percent and settlement delays of several days. He urged immediate digitalisation reforms to improve speed, reduce costs, and expand access for 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.
Dr. Iyabo Masha, Director of the G-24 Secretariat, emphasised the broader context.
“We meet at a moment of measured resilience but constrained ambition in the global economy,” she said, noting that EMDEs face the dual challenge of restoring development trajectories while safeguarding macroeconomic stability amid heightened global volatility.
