Nigeria’s Minister of Finance and Coordinating Minister for the Economy, Wale Edun, has called for increased concessional financing from Bretton Woods institutions to support the development of emerging economies. Speaking at the IMF/World Bank Annual Meetings in Washington, DC, Edun stressed that these economies require substantial investments to achieve sustainable growth.
“We want concessional financing. What developing countries are asking for is larger sums that can help grow their economies,” Edun stated. He noted that while short-term liquidity solutions are useful, they are insufficient for the long-term economic development required in many countries.
Highlighting the difference between developed and emerging markets, Edun pointed out that nations with lower interest rates have successfully managed inflation. Nigeria, in contrast, is focusing on boosting oil production to generate foreign exchange. “The key to foreign exchange is supply,” he said, explaining that the Central Bank of Nigeria is pursuing a rate-tightening approach to stabilize the economy.
On climate change, Edun argued that developing countries rich in fossil fuels should be allowed to use these resources to fund their development, including climate-related projects. He also called for more financial support for countries undergoing reform, advocating for debt relief for middle-income countries.
Edun emphasized the importance of clear communication when implementing economic reforms, suggesting that there should be a “dashboard” to track progress and expectations.