G-24 Cross-Border payments too costly, slow, requires immediate attention – Cardoso

2026-02-19 - 13:16

...Says Nigeria’s Payment System Vision 2028 coming ...As Edun raises the alarm over rising debt service burden ... Members face constrained fiscal space- Masha Emma Ujah, Abuja Bureau Chief The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has described cross-border payments among members of the Group of 24 Nations (G-24) as too costly and slow. His words, “Today, cross‐border payments remain too slow, too costly, and too fragmented, especially for developing economies. With global remittance corridors costing over 6.0 percent, settlement lags of several days, and compliance burdens that exclude MSMEs, millions remain disconnected from global opportunity.” Delivering the keynote address at the on-going Technical Group Meeting, of the Group, in Abuja, yesterday, he called for immediate actions that would address the challenges through modern digitalization that would make such payments faster and cheaper. Mr. Cardoso said his keynote speech on “Digital Cross-Border Payments, Global Finance, and Economic Transformation – Opportunities and Risks” was not merely a technical discussion but a foundational development priority for G‐24 countries. He commended Minister of Finance & Coordinating Minister of the Economy and Chair of the G 24, Mr. Edun for articulating a G-24 vision anchored on modernizing global finance, strengthening domestic capacities, and ensuring that the digital transition becomes a force for shared prosperity. According to him, “These priorities resonate deeply with the mandate of central banks across the G-24 countries.” The CBN boss added, “Across the world, cross‐border payments are becoming the backbone of the international monetary and financial system. For G‐24 economies, inefficiencies in these systems translate directly into higher remittance costs, costly FX transactions, fragmented settlement processes, and barriers to MSME participation in global trade. “Improving cross‐border payments, therefore, is not simply a technical reform, it is a macroeconomic and development priority. The channels through which capital, remittances and trade flows move, now form a critical part of global financial stability architecture. “Digital innovation now presents a historic opportunity to correct these frictions. Modern payments infrastructure, instant payment systems, interoperable digital platforms, distributed ledger technology, and robust digital identity frameworks, can reduce transaction costs for remittances and trade; and shorten settlement times; Improve transparency, compliance, and auditability.” He cited India’s Unified Payments Interface (UPI) now linked with Singapore and the UAE, which has slashed remittance costs and enabled ubiquitous, as a good example. Mr. Cardoso said, building on the current reforms, the CBN was concluding work on the new Payment System Vision 2028, developed in close collaboration with industry stakeholders and built around five strategic priorities aimed at boosting innovation, strengthening system resilience, and advancing financial inclusion. A central part of this agenda is improving the cross‐border payments environment, where Nigeria has made concrete, measurable progress. Edun warns of debt crises In his address, Mr. Edun, who relied on expert surveys, warned that about 50 percent of low-income countries were in or approaching debt distress, requiring urgent actions as debt servicing has become a major burden for many countries in the Global South. He noted that total annual debt servicing payments by debtor countries in the South was far above both flows of Overseas Development Assistance and Foreign Direct Investments from the Global North. According to Mr. Edun, “The gathering was an opportunity to re-shape the development trajectory of the Global South at a time when global risks are converging faster than institutions can respond.” The minister also noted that about 25 per cent of Emerging and Developing Economies EMDEs have lost access to international capital markets making internally generated revenue more compelling than ever. Members face constrained fiscal space- Masha Earlier in her remarks, Dr. Iyabo Masha, Director and Head of the G-24 Secretariat, said that the meeting was holding at a time of heightened uncertainty, policy fragmentation, and structural transformation, which made the conversations not merely valuable, but that they were essential. Her words, “We meet at a moment of measured resilience but constrained ambition in the global economy. For many EMDEs, the challenge is no longer simply to ‘recover,’ but to restore development trajectories, protect macroeconomic stability, and finance transformation in a world of higher volatility. “Today, I would like to highlight five themes: The global outlook is stable but with divergent forces; The policy space for EMDEs is tightening; There are near-term risks beneath the surface; There are policies essential for transformation in the medium-term; and Finally, the reform of Bretton Woods institutions is more urgent than ever.” The Director noted the constrained fiscal space which she said magnified vulnerabilities of member countries. She said, “One important outcome is the extent to which the growing fiscal-financial linkages are significantly constraining fiscal space in many EMDEs, with debt service now absorbing an increasing share of government revenues. “The World Bank’s Global Economic Prospects further emphasizes that public investment in many developing countries remains below the levels needed to achieve essential infrastructure and climate objectives, meaning that current investment shortfalls will likely result in lower potential growth in the future. Amid these challenges, countries are expected to simultaneously consolidate fiscally, invest in climate resilience, protect social spending, strengthen human capital, and manage debt burdens—all at once. “These would be difficult to achieve, since developing countries face high and rising costs of external public debt, with external debt service reaching $487 billion in 2023, and many countries devoting a large share of export revenues to servicing obligations, according to UNCTAD. This points to a deeper, structural financing gap as debt, development, and stability collide.”