Abuja: The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has emphasized the need for unity among countries in the Global South to counter the escalating fragility in global economic growth. Edun delivered this message at the Intergovernmental Group of 24 (G-24) Technical Group Meeting (TGM) 2026 held in Abuja on Thursday.
According to News Agency of Nigeria, Edun highlighted the current global economic landscape as being characterized by significant uncertainties, systemic vulnerabilities, and a tension between fragmentation and integration, all of which have impacted trade and debt sustainability. He described the recurring theme of fragility in various economic aspects as indicative of the precarious state of the global economy. Edun stressed that the TGM provided an opportunity to reshape development paths for countries in the Global South amidst rapidly converging global risks.
Edun referred to findings from the World Economic Forum’s global risk survey, indicating that half of the experts surveyed expect global conditions to remain volatile over the next two years. Furthermore, 57 percent foresee instability over the next decade, with only one percent anticipating a stable global environment. The 2026 Global Risk Report identified economic confrontation, such as tariffs, sanctions, investment restrictions, and strategic decoupling, as potential triggers for global crises.
He noted that increasing fragmentation could reduce global output by up to two percentage points and decrease global trade by more than two percent, disproportionately affecting developing and emerging markets. He pointed out that while Africa accounts for 17 percent of the world’s population, it contributes only about three percent to global trade and roughly 2.5 percent to global output, warning that further fragmentation could aggravate this imbalance.
Edun further elaborated on the fiscal challenges faced by Emerging Markets and Developing Economies (EMDEs), stating that over a quarter of them have lost access to international capital markets, with more than half showing signs of debt distress. He highlighted that debt service payments have exceeded foreign direct investment and Official Development Assistance (ODA) inflows in many developing countries, limiting fiscal space for essential sectors like health, education, infrastructure, and climate resilience.
He asserted the need for reforming global financial structures to close the growing Sustainable Development Goals (SDG) financing gap, estimated at $4 trillion to $5 trillion annually. Over the past two and a half years, Nigeria has implemented politically complex but necessary reforms to restore macroeconomic stability and correct economic distortions, laying the groundwork for a more competitive and resilient economy.
Edun acknowledged the early positive outcomes of these reforms, which have gained global recognition and boosted investor confidence, particularly in the oil sector. He emphasized Nigeria’s shift from a debt-driven growth model to an investment-led framework, focusing on domestic reforms, private capital mobilization, and diverse financing instruments. To achieve a target of seven percent annual growth, Nigeria requires an investment-to-GDP ratio of about 30 percent, with the private sector playing a dominant role through public-private partnerships and asset optimization.
Regarding domestic resource mobilization, Edun stated that the Nigerian government is advancing comprehensive revenue reforms centered on efficiency, transparency, automation, and technology-driven compliance.