At the IMF and World Bank Spring Meetings, Nigeria’s Finance Minister Wale Edun warned that developing countries are facing a serious debt crisis.
He explained that these nations now pay more in loan repayments than they receive in aid and investment.
Edun, who leads the G-24 group of developing countries, pointed to recent IMF data showing that net financial flows to poorer nations became negative last year.
Outflows were billions of dollars higher than inflows, which could increase poverty and instability. “We would like them to do more,” he said, urging for more financial support.
The war in the Middle East has made things worse by raising fuel prices and unsettling capital markets. As investors withdraw, Edun said that international organizations need to act so that developing countries can still access funding.
He called on all institutions to help prevent these economies from losing access to capital.
Nigeria is also dealing with rising fuel costs. Petrol prices have more than doubled in the past year, putting government reforms at risk.
Despite this, the government is avoiding a return to broad subsidies that drained public funds for years. “It is important that we don’t have a relapse into policies that have not proven successful,” Edun cautioned.
He also called for a long-term plan beyond emergency help. This includes raising more domestic revenue and boosting trade within Africa to respond to what he described as a global trading system that is “pretty much in retreat.”
His message was clear. Without quick and strong action from the IMF and World Bank, the growing debt crisis will stop growth and put millions more people at risk of serious economic problems. Edun urged officials to act now, saying that waiting is no longer an option.
