Abuja, Nigeria – During a media briefing at a recent International Monetary Fund (IMF) event, Nigeria’s Minister of Finance, Wale Edun, urged the IMF and the World Bank to reduce borrowing costs for developing countries, citing how high interest rates and increasing debt burdens are severely limiting their ability to invest in economic growth and development.
Edun highlighted that a growing portion of government revenue in developing economies is being diverted to service debt instead of funding critical sectors like infrastructure, healthcare, and education. According to Okay News, this financial strain is worsening economic prospects, particularly in Sub-Saharan Africa, where growth is projected to slow down due to both global and domestic pressures.
The minister’s position was supported by the director of the G-24, an intergovernmental group of developing countries, who noted that some member nations are already facing extremely high interest rates. The IMF recently downgraded Nigeria’s own growth forecast for 2026, citing the impact of rising global fuel and shipping costs.
This plea for lower borrowing costs comes as developing economies grapple with significant fiscal challenges. Reports indicate that African countries are expected to pay over $90 billion in external debt servicing this year alone, a figure that has more than tripled over the last decade, underscoring the urgency behind the finance minister’s request.
