…Says Realistic Approach to Fossil Fuel is Needed

By Emma Ujah, Washington DC

Nigeria’s Minister of Finance and Coordinating Minister for the Economy, Mr. Wale Edun, has called for large-scale concessional financing from Bretton Woods institutions to support the development and emerging economies.

Speaking at the ongoing IMF/World Bank Annual Meetings in Washington DC, Edun stressed that these economies require substantial funds for massive investments.

“We want concessional financing. What developing countries are asking for is larger sums that can help grow their economies,” the minister said. He pointed out that while countries often receive funds to address immediate liquidity challenges, they need more than short-term liquidity solutions to achieve sustainable growth.

Addressing the drop in interest rates in developed countries, Edun explained that these nations have been able to reduce rates because they have successfully managed inflation. In contrast, Nigeria is focusing on increasing oil production to boost exports and generate more foreign exchange. “As regards Nigeria, the key to foreign exchange is supply,” he noted, adding that the Central Bank of Nigeria is continuing its rate-tightening approach, which he described as orthodox but necessary.

On the topic of clean energy and climate change, Edun argued that countries rich in fossil fuels should be permitted to use their resources for economic development. “Poor countries that have fossil fuel must take a realistic approach by telling our partners that we have to use our fossil fuel to develop our climate change projects,” he asserted.

He also called for improved financial flows to developing and emerging markets, particularly to countries implementing reforms whose policies only need time to mature. Additionally, the minister advocated for middle-income countries to qualify for debt relief.

Reflecting on lessons learned from Nigeria’s ongoing reforms, Edun emphasized the importance of clear communication. “Communicating what is being done, what is to be expected, and the timing is key. There should be a dashboard that people can follow,” he said.