Nigerian finance minister and chair of the G-24 coalition of developing countries, Wale Edun, said multilateral institutions should do more to support vulnerable countries weather the economic shocks of the war in the Middle East.
additional liquidity risk management tools that bring down the cost of financing, speaking during a briefing of the G-24 during the IMF/World Bank Spring meetings in Washington.Edun said that given cuts to development assistance and international aid, and the cost of repaying debts, the net financial flows to developing economies are currently negative.
At the IMF-World Bank meetings, Edun, who chairs the G24 group of developing nations, plans to advocate for lower borrowing costs, fairer global financial conditions, and greater support for countries undertaking reforms.
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The appeal comes as Nigeria grapples with economic pressure from escalating geopolitical tensions. Petrol prices have surged more than 50% to 1,330 naira ($0.9788) per litre—and diesel more than 70% to 1,550 naira a litre—since the start of the conflict, hurting people and businesses.
The jolting change threatened to derail reforms launched in 2023 to stabilise the economy and revive growth. He said that tighter financial conditions and heightened risk aversion in capital markets due to the war in the Middle East could reduce the flow of private capital into emerging economies.
Edun said that government support for vulnerable citizens must be “targeted and temporary” and that the developing world should also focus on domestic revenue mobilisation and that Africa should seek to boost internal trade to counter changes to the global trade system.
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Edun stated that the government remains resolute and working harder to maintain macroeconomic stability, attract investments to drive inclusive growth, and invest in human capital and social protection.
Image Credit: Nairametrics
Source: Nairametrics
