Nigeria’s Finance Minister Wale Edun Tells IMF and World Bank Developing Countries Need Stronger Support

Nigeria’s Finance Minister and G-24 Chair, Wale Edun, has urged stronger multilateral support for developing countries facing economic pressure from the Middle East conflict, warning that rising debt costs and tighter global financing are worsening conditions. He also said Nigeria will seek external support as fuel price shocks strain reforms, while stressing targeted assistance instead of a return to general subsidies.

Nigeria’s Finance Minister and Chairperson of the G-24, Wale Edun, has urged multilateral financial institutions to step up support for developing and vulnerable economies as they continue to face mounting economic pressures linked to the ongoing war in the Middle East.
Speaking at a briefing during the IMF/World Bank Spring Meetings in Washington, Edun stressed that many developing countries are currently struggling with a combination of global shocks, including rising geopolitical tensions, tighter global financial conditions, and reduced flows of development assistance. He noted that these challenges are making it more expensive for many countries to access financing, particularly in international capital markets where risk perception has increased significantly.
He called for the introduction and expansion of liquidity support mechanisms and other risk management tools that could help reduce borrowing costs for developing economies. According to him, such interventions are necessary to stabilise vulnerable economies that are already dealing with heavy debt burdens and limited fiscal space. He further explained that the current global environment has led to what he described as negative net financial flows to many developing countries, where debt repayments and capital outflows exceed incoming investments and aid.
Edun also highlighted concerns that the ongoing conflict in the Middle East could further weaken investor confidence, potentially reducing private capital inflows into emerging markets. He warned that this situation could slow down economic recovery efforts in several countries that rely heavily on foreign investment and external financing for development projects.
On Nigeria’s position, he stated that the country would be seeking stronger international financial support to help manage the domestic impact of rising global fuel prices, which have been influenced by the conflict. He explained that higher energy costs are adding pressure to ongoing economic reforms and increasing the cost of living for citizens.
However, Edun emphasized that any form of government intervention to support citizens must be carefully targeted and temporary. He cautioned against a return to broad-based fuel subsidies, which Nigeria phased out in recent years, arguing that such policies are financially unsustainable and have not delivered long-term economic stability.
He also underscored the importance of strengthening domestic revenue mobilisation as a key strategy for improving fiscal resilience. In addition, he called on African countries to deepen intra-continental trade in order to reduce dependence on external markets, especially at a time when global trade dynamics are becoming increasingly uncertain and, in his words, “in retreat.”
Overall, his remarks reflect growing concerns among developing nations about the combined impact of global conflict, financial tightening, and weakening aid flows, and the urgent need for stronger international cooperation to support economic stability.