The Digest:
Finance Minister Wale Edun has warned that about 50 percent of low-income countries are in or approaching debt distress, requiring urgent action, while Nigeria's debt service-to-revenue ratio stood at 47% in 2025. Speaking at the Group of 24 (G-24) Technical Group Meeting in Abuja, Edun disclosed that total annual debt servicing payments by Global South countries far exceed both Overseas Development Assistance and Foreign Direct Investment inflows. Nigeria's public debt is estimated at an all-time high of $100 billion. Meanwhile, CBN Governor Olayemi Cardoso described cross-border payments among G-24 nations as "too slow, too costly, and too fragmented," with global remittance corridors costing over 6 percent and settlement lags of several days. He called for digitalisation to make payments faster and cheaper. G-24 Secretariat Director Iyabo Masha noted the meeting occurs amid "heightened uncertainty, policy fragmentation, and structural transformation."
Key Points:
- Nigeria's 47% debt service-to-revenue ratio leaves limited fiscal space for development.
- High remittance costs and slow payments disproportionately affect developing economies.
- Citizens face reduced public services, while the government prioritises debt repayment.
- This signals the urgent need for debt restructuring and cheaper payment systems.
- The timing, with G-24 discussions, seeks multilateral solutions.
Sources: Vanguard
