Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has called on the International Monetary Fund (IMF) and the World Bank to reduce borrowing costs for developing countries. He emphasized that rising debt pressures and limited access to affordable financing are straining these economies.
Wale Edun made this appeal on Tuesday, April 14, during a media briefing by the Intergovernmental Group of Twenty-Four (G-24). The event took place alongside the launch of the IMF’s April 2026 Global Financial Stability Report.
Global Economic Concerns
Edun’s remarks come as the IMF forecasts a slowdown in global economic growth, from 3.4% in 2025 to 3.1% in 2026. This decline is largely attributed to the ongoing conflict in the Middle East.
Key Points Raised
Wale Edun highlighted the increasing challenges faced by developing economies, particularly in Sub-Saharan Africa. He noted that reduced access to concessional financing is worsening economic prospects. Growth in the region is expected to slow from 4.5% in 2025 to 4.3% in 2026 due to both global and domestic pressures.
He called for urgent measures to ease financing conditions, including tools to lower borrowing costs for vulnerable nations. “We would like them, especially at this time, to provide additional liquidity and risk management tools that reduce the cost of financing,” Edun said.
He also pointed out that high interest rates and rising debt servicing costs are limiting the ability of developing countries to invest in critical areas like infrastructure, healthcare, and education. A significant portion of government revenue is now being diverted to debt repayment instead of development.
Supporting Views
Iyabo Masha, Director of the G-24 on International Monetary Affairs and Development, supported Edun’s position. She noted that some G-24 member countries are already burdened with extremely high borrowing costs.
Masha revealed that two G-24 member nations present at the briefing are among those paying the highest interest rates globally. She stressed the need for immediate intervention. “This is one area where the IMF can support developing countries. There are also ongoing discussions with the World Bank on ways to further assist these nations,” Masha said.
Additional Insights
Debt levels across Africa are rising, increasing fiscal risks as governments struggle with growing repayment obligations.
According to S&P Global Ratings, African countries are expected to spend over $90 billion on external debt servicing this year. This figure is more than three times the amount recorded in 2012.
