By Chimezie Godfrey
Nigeria on Thursday urged developing countries to unite and reshape the global financial architecture as rising geopolitical rivalry, trade fragmentation and mounting debt pressures threaten growth across emerging economies.
Speaking in Abuja at the 2026 Technical Group Meeting of the G-24, Finance Minister Wale Edun described the moment as decisive for the Global South, warning that the world was entering an “age of competition” that could deepen inequality if left unmanaged.
Edun said the meeting was not routine but a strategic intervention.
“We meet at a defining moment for the global economy marked by uncertainty and systemic vulnerabilities. This is an opportunity to reshape the development trajectory of the Global South,” he said.
He cited global projections showing persistent instability and weakening multilateral cooperation.
“Geoeconomic confrontation —tariffs, sanctions and strategic decoupling — is now ranked the number-one global crisis trigger. Fragmentation could reduce global output and shrink trade, and the consequences will fall hardest on developing economies,” Edun hinted.
The minister lamented Africa’s marginal participation in world commerce.
“Despite hosting 17 percent of the world’s population, Africa accounts for only about 3 percent of global trade. Fragmentation will worsen that imbalance if we do nothing.”
He also warned that tightening financial conditions were worsening debt distress.
“Over a quarter of emerging economies have lost access to capital markets while more than half of low-income countries are nearing debt distress. The SDG financing gap has expanded to between four and five trillion dollars annually.”
Highlighting Nigeria’s reforms under Bola Ahmed Tinubu, Edun said the country had moved from crisis management to economic stabilization.
“We implemented difficult but necessary reforms. The direction is clear — stabilize today, correct distortions and accelerate inclusive growth tomorrow.”
According to him, investor confidence was returning.
“Major capital commitments are re-entering the economy, including a significant investment pledge by Shell alongside other inflows.”
He said Nigeria was abandoning debt-driven growth.
“We are shifting toward investment-led expansion powered by private capital, structured partnerships and optimized public assets.”
Edun added the country planned to raise tax-to-GDP ratio to 18 percent through automation and transparency reforms.
Central Bank Governor Olayemi Cardoso linked inclusive growth to payment infrastructure, arguing that financial exclusion begins with weak payment systems.
“An economy cannot be more inclusive than its payment system. If people cannot move money easily across borders, they cannot fully participate in modern economic life.”
He said cross-border payments remained costly and slow, especially for developing economies.
“Remittance corridors still cost over six percent and settlement delays run for days. Millions remain disconnected from global opportunity.”
Cardoso revealed Nigeria’s reforms were improving access.
“Our new payment stack and simplified cross-border requirements are enabling SMEs to trade faster across Africa, while remittances now average 600 million dollars monthly and could soon hit one billion.”
Earlier, Director of the G-24 Secretariat Iyabo Masha delivered the most detailed warning, saying global stability was fragile and offered no guarantee of convergence for poorer countries.
“The world economy shows resilience, but resilience is not robustness. Growth exists, yet it lacks the strength to close income gaps,” she stressed.
Masha explained that developing countries faced shrinking policy space.
She said,”Debt service is absorbing larger shares of revenue while governments must simultaneously invest in infrastructure, climate adaptation and social protection. This collision of debt, development and stability defines our era.”
Masha warned trade fragmentation was already slowing growth.
“When global trade expansion drops toward 0.5 percent, it means fewer opportunities for scale and slower technology diffusion. This is not theoretical — it directly affects jobs and incomes,” she asserted.
She outlined near-term risks including inflation shocks, capital outflows and prolonged debt crises.
“The world cannot normalize permanent debt distress as a new equilibrium,” she said.
According to her, long-term recovery depends on deliberate reforms.“Stronger macroeconomic frameworks, domestic resource mobilization, climate investment and regional integration must drive transformation.”
She called for reform of Bretton Woods institutions.“Eighty years after their creation, the system must be renewed so developing countries shape global rules rather than merely adapt to them,” she noted.
The meeting concluded with calls for coordinated South-South cooperation and modernized global finance to support inclusive growth.