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The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has called on developing countries to adopt proactive measures to mitigate the impact of global economic shocks.
Edun made this appeal during the G24 news conference held on the sidelines of the ongoing International Monetary Fund meeting in Washington, D.C.

He warned that premature or excessive interest rate hikes could undermine ongoing economic reforms, while delayed policy responses risk fuelling inflation.

According to him, Central Banks in developing economies play a critical role in navigating challenges such as energy crises and geopolitical tensions.

The minister noted that policy responses vary across countries, particularly between oil-producing and oil-importing nations. While countries like Nigeria may benefit from increased oil revenues, oil-importing countries face higher costs. However, both groups continue to grapple with inflationary pressures stemming from energy markets.

Edun stressed that even oil-exporting nations are not immune, as rising costs of gas, fertiliser, and food are being felt across economies, underscoring the far-reaching effects of the global energy crisis.

He emphasised the importance of building economic resilience, urging countries to utilise existing fiscal buffers and implement targeted, temporary relief measures for vulnerable populations, rather than reversing key reforms already in place.

Cautioning against a return to subsidy regimes, Edun stated that reforms such as fuel subsidy removal and foreign exchange liberalisation have strengthened Nigeria’s economic framework despite recent external shocks.

He further urged governments to prioritise support for the most vulnerable citizens, ensuring they can cope with rising living costs without jeopardising long-term structural reforms essential for sustainable growth.

Edun observed that positive oil price shocks could strengthen fiscal and external balances for exporting countries, creating room for responsible public investment. However, he stressed the need for disciplined macroeconomic management.

He cited the adoption of hedging strategies by some countries to stabilise oil revenues, noting that such measures enhance predictability and support long-term fiscal planning amid volatile global market conditions.

The minister also pointed out that while developing countries continue to expect support from advanced economies, declining overseas development assistance and rising debt servicing obligations are worsening their fiscal challenges.

According to him, debt servicing costs in many developing countries have now surpassed inflows from aid and investment, significantly limiting fiscal space and constraining efforts toward meaningful economic transformation.

Edun called on multilateral institutions to increase liquidity support and provide policy guidance to help developing nations manage current economic pressures and financial vulnerabilities more effectively.

He identified domestic resource mobilisation as a more sustainable path forward, advocating improved tax systems and stronger private sector participation to boost revenue and reduce dependence on external financing.

The minister also pushed for concessional financing and innovative risk management tools to lower borrowing costs, noting that high debt servicing burdens continue to hinder development and economic transformation across many developing countries.

On technology, Edun acknowledged that while the rise of Artificial Intelligence (AI) may initially widen inequality, it also presents opportunities to enhance revenue mobilisation through automation and digitalisation.

He added that improving tax-to-Gross Domestic Product (GDP) ratios would depend significantly on technology adoption, including AI, to boost efficiency, transparency, and overall revenue generation.

Edun expressed concern over slowing global trade growth, noting that fragmentation and supply chain disruptions are prompting developing economies to focus more on domestic production and regional integration.

Also speaking, the Director of the G-24 Secretariat, Iyabo Masha, highlighted that supply-side constraints, particularly in oil production, respond weakly to monetary policy. She therefore urged Central Banks to adopt a cautious, data-driven approach to decision-making.

Masha further called on multilateral institutions to intensify support, especially in reducing borrowing costs and addressing debt-related challenges. She also reaffirmed the importance of a rules-based global trading system in promoting inclusive economic growth.

Efe Ovuakporie
Head Information and Public Relations Unit

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Iran slammed a US blockade around its ports on Monday as a “grave violation” of its sovereignty, as Washington and Tehran’s belligerent rhetoric rattled a fragile truce.

“The imposition of a maritime blockade constitutes a grave violation of the sovereignty and territorial integrity of the Islamic Republic of Iran,” Iran’s ambassador to the United Nations Amir Saeid Iravani wrote to UN Secretary General Antonio Guterres, in a letter seen by AFP.

The “unlawful” blockade also “constitutes a serious violation of the fundamental principles of the international law of the sea,” Iravani added.

US President Donald Trump ordered a blockade of ships entering or leaving Iranian ports and coastal areas in the Gulf Sunday, following the failure of peace talks over the weekend, warning that any Iranian attack boats that challenged the blockade would be destroyed.

The blockade came into force at 1400 GMT Monday, despite the United States and Iran agreeing to a two-week ceasefire days earlier, with mediator Pakistan and Gulf state Qatar continuing calls for it to be respected as diplomatic efforts continue.

Guterres on Monday called on “all parties” to respect freedom of navigation in the Strait of Hormuz, after Iran and subsequently the United States blocked passage through the critical waterway.

The strait, through which a fifth of global oil and gas flows, has become a key flashpoint as the US and Iran attempt to gain leverage over each other during ceasefire negotiations.

Iravani said the “unlawful” blockade “poses a grave threat to international peace and security and obviously exacerbates the risk of escalation in an already highly volatile region.”

In a second letter, the UN envoy called on Middle Eastern countries hosting US military bases to “cease their internationally wrongful acts.”

Bahrain, Saudi Arabia, Qatar, the United Arab Emirates and Jordan should pay “compensation for all material and moral damage sustained,” he said.

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Former Kaduna State Governor Nasir El-Rufai has distanced himself from recent media reports linking him to certain political aspirations, saying the comments were made without his knowledge or authorisation.

In a statement issued on Tuesday by his Media Adviser, Muyiwa Adekeye, El-Rufai said the remarks had been attributed to an unnamed individual described in media reports as his political associate, and that he had no hand in them.

“Malam Nasir El-Rufai wishes to dissociate himself from comments regarding political aspirations which have been attributed to someone described by the media as a political associate,” the statement read.

“He did not authorise such comments.”

The disclaimer pointedly underscored El-Rufai’s reputation for speaking his mind directly, with the statement noting that he had been known throughout his public life for the frank articulation of his views.

“He is not about to outsource the expression of his political views and thoughts to others,” the statement added, warning that any future communication from the former governor would come directly from him or through his designated spokesperson.

El-Rufai did not identify the associate in question, nor did the statement specify the nature of the political aspirations that had been reported.

However, the swift and emphatic denial suggests the former governor was keen to prevent any impression that the comments reflected his current political thinking or intentions.

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The disclaimer comes amid heightened political activity ahead of the 2027 general elections, a period in which the positions and affiliations of prominent political figures are under intense media and public scrutiny.

El-Rufai, a former Minister of the Federal Capital Territory and two-term governor of Kaduna State, remains one of the most closely watched political figures in northern Nigeria.

His next political move — including which party platform he may adopt ahead of 2027 — has been a subject of widespread speculation.