Edun Pushes for Lower Borrowing Costs at IMF and World Bank Meetings Amid Rising Global Pressures

Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, is heading into the 2026 Spring Meetings of the International Monetary Fund and the World Bank in Washington with a clear message: developing economies need lower borrowing costs and stronger financial support to withstand global shocks.

Speaking ahead of the meetings in his role as chair of the G24, Edun warned that rising geopolitical tensions, including the ongoing Iran conflict, are worsening global inflation pressures and increasing the cost of living across developing nations. He noted that while higher crude oil prices may boost foreign exchange earnings for oil-producing countries like Nigeria, the broader economic impact remains negative for households and businesses.

In Nigeria, the ripple effects are already being felt. Petrol prices have surged by more than 50% to around ₦1,330 per litre, while diesel has jumped over 70% to about ₦1,550 per litre since the escalation of global tensions. These increases, he said, are placing heavy strain on transport costs, production, and household budgets nationwide.

Edun also cautioned that these external shocks could undermine Nigeria’s ongoing reform programme introduced in 2023 under President Bola Tinubu. The reforms—covering subsidy removal, exchange rate adjustments, and tax restructuring—are aimed at stabilising the economy, attracting investment, and restoring long-term growth momentum.

Despite the challenges, Nigeria’s crude benchmark, Bonny Light, has climbed from about $70–$73 per barrel to over $120, reflecting tighter global supply conditions. Inflation, which eased earlier in the year, is now under renewed pressure. Still, the government insists it will continue prioritising investment-driven growth while cushioning vulnerable citizens from rising living costs.

source: Leadership