At the United Nations Financing for Development conference held in Madrid, Spain, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, delivered a strong appeal for a restructuring of the global financial system. Representing one of Africa’s largest economies, Edun emphasized the urgent need for a more equitable international economic order, particularly one that supports the fiscal sustainability and developmental needs of low- and middle-income countries.

His remarks come at a time when many developing nations are grappling with the fallout from rising debt levels, climate change, and economic shocks, while still working to meet the UN Sustainable Development Goals (SDGs) by 2030.

Key Demands: Rethinking Global Finance to Serve All Nations

In his address, Minister Edun highlighted three core areas that require urgent attention and reform:

1. A Fairer Global Financial Architecture

Edun criticized the current international financial system as being skewed in favor of advanced economies, often leaving developing nations with limited access to affordable financing for essential public services and infrastructure.

“Developing countries like Nigeria need access to long-term, low-interest financing to build the future—education, health, energy, and climate resilience should not come at the cost of crushing debt,” he said.

He called on multilateral institutions like the IMF and World Bank to streamline access to concessional loans and better tailor support mechanisms for countries with large populations and high development needs.

2. Tackling Tax Inequities and Illicit Financial Flows

Edun also focused on the massive loss of revenue African nations suffer from tax avoidance, evasion, and illicit financial flows (IFFs). According to the United Nations Economic Commission for Africa (UNECA), Africa loses over $88 billion annually to IFFs—funds that could otherwise be invested in education, health, and infrastructure.

Nigeria urged the global community to support:

• Transparent tax systems

• Fair international tax rules that prevent base erosion

• Greater cooperation in tracing and repatriating stolen assets

He stressed that global cooperation on tax justice is not merely a legal issue, but a matter of economic fairness and sovereignty.

3. Investment in Digital Infrastructure and Social Protection

Recognizing the digital divide as a key barrier to development, Edun advocated for increased global investment in digital infrastructure, particularly in sub-Saharan Africa. He stated that digital inclusion is critical to unlocking youth potential, boosting innovation, and expanding financial access.

He also emphasized the need for stronger social safety nets to shield vulnerable populations from economic shocks, such as pandemics, inflation, and food insecurity.

Nigeria’s Broader Economic Vision

The minister’s statement aligns with Nigeria’s current reform agenda under President Bola Tinubu, which includes:

• Phasing out fuel subsidies

• Floating the naira to unify foreign exchange rates

• Increasing investment in social services and infrastructure

These reforms, though controversial at home, are designed to strengthen fiscal resilience and attract long-term investment. However, Nigerian officials have consistently stressed that without global support and fair financial rules, such reforms could risk further hardship without delivering equitable development.

Global Context: A Moment for Transformation

The UN conference, themed “Financing for Sustainable Development in an Era of Crisis,” drew participants from across the world, including finance ministers, development banks, and civil society actors. The dialogue centered on how to mobilize the estimated $4 trillion annual funding gap needed to meet the SDGs globally.

Nigeria’s intervention resonated with the broader calls from the Global South for more inclusive global economic governance. Other countries such as Kenya, Pakistan, and Brazil made similar demands for debt relief, climate financing, and SDG-aligned investments.

Conclusion: Toward a More Just Economic Order

Nigeria’s call for reform at the UN conference reflects a growing global consensus: the current financial system is no longer fit for purpose in an increasingly unequal and climate-stressed world. Without deliberate efforts to restructure financial institutions, curb illicit financial flows, and prioritize human-centered investments, developing nations will remain trapped in cycles of debt and underdevelopment.

Minister Wale Edun’s message was clear, a new global deal is needed, one that recognizes the aspirations and rights of all nations, not just the economically powerful.

Published on Xamblog.com – Global finance, policy analysis, and development insights for Africa’s future.

Last Updated on July 3, 2025 by kingstar