Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has raised concerns over the growing burden of debt servicing on developing economies, warning that rising obligations are constraining fiscal space and development prospects.
Speaking at the Technical Group Meeting of the Group of 24 (G-24) in Abuja, Edun noted that many countries in the Global South are facing severe debt pressures, with about half of low-income nations either already in debt distress or at high risk.
Although Nigeria is classified as a lower-middle-income country, its debt profile has continued to rise, with total public debt estimated at about $100 billion and a debt service-to-revenue ratio of roughly 47 percent in 2025.
Edun stressed that the scale of debt servicing across developing economies now exceeds inflows from both foreign direct investment and official development assistance.
“The gathering was an opportunity to re-shape the development trajectory of the Global South at a time when global risks are converging faster than institutions can respond,” he said.
He further disclosed that about 25 percent of emerging and developing economies have lost access to international capital markets, making domestic revenue mobilisation increasingly critical.
Also addressing the meeting, Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, highlighted structural challenges in cross-border payments among developing countries.
“Today, cross border payments remain too slow, too costly, and too fragmented, especially for developing economies,” he said, noting that remittance corridors still cost over six percent and settlement delays often run into several days.
Cardoso called for accelerated digital transformation to make cross-border transactions faster, cheaper and more inclusive, particularly for micro, small and medium enterprises (MSMEs).
Earlier, Director and Head of the G-24 Secretariat, Dr. Iyabo Masha, observed that member countries are operating under constrained fiscal conditions amid global uncertainty and structural economic shifts.
“We meet at a moment of measured resilience but constrained ambition in the global economy,” she said, adding that many emerging economies must now focus on restoring growth, safeguarding macroeconomic stability and financing long-term transformation.
The G-24 meeting focused on strengthening domestic resource mobilisation, modernising global financial systems and improving development financing for emerging and developing economies.
