Edun Raises the Alarm Over Rising Debt Service Burden

By Rachel Akper

Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has raised concerns over the growing debt service burden in developing countries, urging urgent action to safeguard fiscal stability.

Speaking at the Technical Group Meeting of the Group of 24 Nations (G‑24) in Abuja, Edun warned that about 50 percent of low-income countries are already in or approaching debt distress. While Nigeria is classified as a lower-middle-income country by the World Bank, the minister highlighted that the country’s public debt has been rising since 2023, reaching an estimated $100 billion, with a debt service-to-revenue ratio of 47% in 2025.

Edun emphasized that debt servicing has become a major burden for many countries in the Global South, noting that annual debt repayments often exceed foreign direct investments and overseas development assistance. He said the meeting presented an opportunity to reshape development trajectories for the Global South amid rapidly converging global risks.

“About 25 percent of emerging and developing economies have lost access to international capital markets, making internally generated revenue more compelling than ever,” he said.

Also addressing the gathering, Central Bank of Nigeria (CBN) Governor Olayemi Cardoso highlighted inefficiencies in cross-border payments, describing them as too slow, too costly, and fragmented, which limits access to global financial opportunities for micro, small, and medium enterprises (MSMEs).

He called for digital modernization to make payments faster and cheaper.

The Director and Head of the G-24 Secretariat, Dr. Iyabo Masha, described the meeting as crucial, noting that many emerging and developing economies face heightened uncertainty, constrained fiscal space, and structural transformation, which makes discussions on debt management and domestic revenue generation essential.