Developing countries are being ripped off!
Nigeria’s Finance Minister Taiwo Oyedele has blown lid off global lending scam, revealing developing economies pay staggering $500 billion extra on loans compared to rich nations.
We Are Paying Too Much – Oyedele Blasts IMF, World Bank In Bangkok
Speaking in Bangkok at ongoing World Bank/IMF Annual Meetings, Oyedele, who chairs G-24 group of developing nations, slammed high cost of borrowing.
ALSO READ: Nigerians reject IMF tax hike on fuel, others
He urged IMF and World Bank to make concessional financing affordable for vulnerable countries.
“We call on both IMF and World Bank to find means of making particularly short-term, more affordable concessional borrowing available to particularly vulnerable countries,” he thundered.
Oyedele warned governments should NOT impose new taxes on struggling citizens and businesses, saying look inward, cut waste, mobilise domestic revenue instead.
“Wrong time to impose new taxes!” he declared.
Why Nigeria Removed Fuel Subsidy First
Defending Tinubu’s reforms, Oyedele revealed why fuel subsidy was removed before FX floating.
“Biggest component of that subsidy wasn’t fuel product itself, it was delay in FX flotation. So if we had done FX flotation before fuel subsidy removal, it would have been impossible,” he explained.
He said petrol prices rose 100% after subsidy removal, then rose again two weeks later after FX reform. Government kept price cap for few months to ease transition.
“If you start your reforms and you do it halfway, you deliver pain, gains not guaranteed,” he warned.
ALSO READ: Nigeria’s $1 trillion economy on, Oyedele declares as growth hits higher gear
He stressed tax reforms aim to provide relief, not hardship, with cash transfers reaching over 10 million households and education support for 1.5 million students.
Capital Follows Trust, Not Just Returns
Oyedele also pushed for African Continental Free Trade Area success, urging alignment of trade, fiscal and monetary policies. Nigeria developing National Single Window to simplify border procedures.
He called for $300 billion annual climate finance by 2035 and IMF quota realignment.
IMF Deputy Managing Director Bo Li warned Africa’s current growth rate means income per person may take 50 years to double, citing high debt and expensive borrowing.
AfDB President Sidi Ould Tah urged governments to deliver results, not just announce reforms, citing Mission 300 to give electricity to 300 million Africans by 2030.
Oyedele’s message clear: “Capital follows trust before it follows returns!”
