Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, has warned that about 50 per cent of low-income countries are approaching debt distress and require urgent actions.
Speaking at the on-going Technical Group Meeting of members of the Group of 24 Nations (G-24) in Abuja, on Thursday, Mr. Edun disclosed that debt servicing has become a major burden for many countries in the Global South (Developing Countries).
He noted that total annual debt servicing payments by debtor countries in the Global South was far above both inflows of Overseas Development Assistance and Foreign Direct Investments from the Global North.
“The gathering was an opportunity to re-shape the development trajectory of the Global South at a time when global risks are converging faster than institutions can respond,” he said.
According to him, about 25 per cent of Emerging and Developing Economies have lost access to international capital markets making internally generated revenue more compelling than ever.
In his speech at the meeting, the Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, described cross-border payments among members of the Group of 24 Nations (G-24) as too costly and slow.
“Today, cross border payments remain too slow, too costly, and too fragmented, especially for developing economies. With global remittance corridors costing over 6.0 per cent, settlement lags of several days, and compliance burdens that exclude MSMEs, millions remain disconnected from global opportunity,” he said.
He called for immediate actions that would address the challenges through modern digitalization that would make such payments faster and cheaper.
Cardoso explained that his keynote speech on “Digital Cross-Border Payments, Global Finance, and Economic Transformation – Opportunities and Risks” was not merely a technical discussion, but a foundational development priority for G 24 countries.
He commended Mr. Edun, who is also the Chairman of G-24 for articulating the Group’s vision anchored on modernizing global finance, strengthening domestic capacities, and ensuring that the digital transition becomes a force for shared prosperity.
“These priorities resonate deeply with the mandate of central banks across the G-24 countries,” he said
“Across the world, cross border payments are becoming the backbone of the international monetary and financial system. For G -24 economies, inefficiencies in these systems translate directly into higher remittance costs, costly FX transactions, fragmented settlement processes, and barriers to MSME participation in global trade.
“Improving cross border payments, therefore, is not simply a technical reform, it is a macroeconomic and development priority. The channels through which capital, remittances and trade flows move, now form a critical part of global financial stability architecture,” he added.
GIK/APA