BANGKOK, Thailand (XOL Africa) — Nigeria’s Finance Minister Taiwo Oyedele has called on the International Monetary Fund (IMF) and World Bank to make concessional loans more affordable for developing countries, saying they face an estimated $500 billion in additional borrowing costs compared with advanced economies.
Oyedele, who chairs the ministerial group of the Intergovernmental Group of Twenty-Four (G24), said high debt-servicing costs were limiting the ability of developing countries, including African economies, to finance public services, infrastructure and job creation.
“We have some estimates indicating that these developing countries are paying in the region about $500 billion more than they should be paying compared to developed countries,” Oyedele said during a news conference at the 2026 IMF and World Bank annual meetings in Bangkok.
He urged governments to improve domestic revenue mobilisation and identify areas for savings while avoiding tax increases that place additional pressure on vulnerable households and productive sectors of the economy.
“Our charge to both the IMF and the World Bank is to find means of making, particularly short-term, more affordable concessional borrowing available to particularly the vulnerable countries,” he said.
Oyedele also called for longer-term policies to mobilise private capital, arguing that limited public resources should be directed towards essential social services.
The Nigerian minister said borrowing remained an important tool for economic development but must be used to support inclusive growth and create jobs rather than impose unsustainable financial burdens on governments.
Nigeria’s minister calls for balance between taxes and borrowing
Addressing concerns about the competing pressures of taxation and debt financing, Oyedele said governments must balance revenue needs against the impact of taxes on households and businesses.
He said the objective should be to raise sufficient revenue to fund public services without depriving vulnerable citizens of the resources they need for food, health care and education.
“The essence of tax and of debt is to care for the people,” Oyedele said. “If you put people always at the center of your policies, you will not be perfect, but you are likely to strike a balance that works and is sustainable.”
His comments come as developing economies face pressure to finance development priorities while managing borrowing costs and debt vulnerabilities. The G24’s 2026 annual meeting communiqué called for predictable, timely and coordinated sovereign debt restructuring, greater transparency and improved credit rating assessments.
The group also urged the IMF and World Bank to develop financing arrangements that better reflect the economic challenges facing vulnerable countries.
Oyedele warns against AI-driven unemployment
The Nigerian minister also called for economic policies that translate macroeconomic stability into tangible improvements in living standards, warning that artificial intelligence could worsen unemployment if governments fail to manage its adoption.
He said the issue was particularly important for countries with young populations, where job creation remains a major development priority.
“There is a particular focus of interest at the G24 about the potential impact of AI such that if we are not intentional in how we regulate and adopt AI, it can hamper growth and lead to more unemployment,” Oyedele said.
He argued that economic growth should be inclusive and generate employment rather than serve as an end in itself.
Oyedele said macroeconomic stability and job creation should not be treated as competing objectives, describing stability as the foundation for sustainable growth and prosperity.
Nigeria’s minister seeks fairer climate financing for Africa
Oyedele also called for greater international support to help African countries address climate change without sacrificing economic development.
Responding to a question about whether Africa was guaranteed a fair share of international climate finance, he acknowledged that no such guarantees existed but said fairness and global economic interests required support for developing countries.
He argued that African economies should not be forced to increase emissions to achieve their development ambitions, while also warning against climate policies that could deepen poverty.
“You do not want a clean world with hungry people,” he said, calling for collective international action to balance environmental protection with economic growth.
The G24 communiqué called on the World Bank Group, regional development banks and other stakeholders to deliver at least $300 billion in annual climate finance by 2035. It also reaffirmed the principle that countries have different responsibilities and capacities in addressing climate change.
Oyedele said the expected effects of El Niño on G24 member countries highlighted the risks climate shocks pose to food security and livelihoods. He also cautioned against export restrictions, tariffs and other trade barriers that could worsen supply pressures.
The G24, which brings together developing economies to coordinate positions on international monetary and development issues, also called for reforms to IMF quotas to give emerging markets and developing countries a stronger voice in the institution’s decision-making.
The group said its proposals were aimed at strengthening global economic cooperation and ensuring that international financial institutions better reflect the needs and economic realities of developing countries.
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