Int’l financial architecture outdated, undemocratic — ActionAid Nigeria

ActionAid Nigeria has called for a change in the current international financial architecture, which it said, is outdated, undemocratic, and unjust.

The Country Director of ActionAid Nigeria, Mr. Andrew Mamedu who made the call on Tuesday while addressing a Civil Society National Dialogue on Transforming the Financing for Development in Abuja said, the current international financial architecture perpetuates inequality and reinforces dependency.

While noting that the annual illicit financial flows of over $18 billion are bleeding the nation’s economy of much-needed resources, Mamedu said, the consequences are not abstract but they are measured in lives.

He further explained that as of today, over 129 million Nigerians live below the poverty line adding that youth unemployment is high and inflation continues to erode household incomes.

He said, “That is why today’s conversation matters. As part of the broader mobilisations toward the Fourth International Conference on Financing for Development (FFD4) in Seville, this national dialogue is an opportunity for civil society to develop a unified voice, grounded in justice and solidarity, to call for urgent reforms both at home and globally.

ActionAid Nigeria, he said is calling for the cancellation of unsustainable and illegitimate debts and that, rich countries must honour their climate debt obligations.

Mamedu stressed the need for a fair, transparent, and democratic global financial system that is accountable to the people, not profit, national governments must tax the super-rich and large corporations, invest in public services for all, and accelerate a just transition for people and the planet.

“We must move from dependency to sovereignty and reclaiming our right to define and fund our own development. This means plugging leakages, stopping illicit financial flows, expanding our tax base equitably, and ensuring that our fiscal policies are gender-responsive and people-centred” the ActionAid boss stated.

Also speaking, the Executive Director of the Civil Society Legislative Advocacy Centre (CISLAC), Comrade Auwal Ibrahim who was represented by the Program Manager, Ayo Omowu said across health, education, agriculture, water, and security sectors, there are severe financing gaps that hinder development ambitions.

He said the financing challenges are deeply rooted in systemic issues, corruption, inadequate budgetary allocation and implementation, non-transparent procurement processes, and outdated or unavailable data that continue to undermine planning and policy execution.

Most troubling, he said, is the collapse of development blueprints at the state level as, many states do not even have a measurable development plan, making it impossible to track or assess progress.

“To overcome these challenges, we need a whole-of-society approach. Policymakers, legislators, the private sector, civil societies, and development partners must work together to craft and implement strategies that can unlock new sources of revenue and improve financial management,” he said.

In his paper, titled, “Trend Analysis of Nigeria’s Debt Stock, 2020 to 2024”, the Lead Director, Centre for Social Justice (CSJ), Barr Eze Onyekpere called for transparency and accountability in the implementation of the country’s budget.

He said any Government or its agencies and corporations desirous of borrowing money should specify the purpose for which the borrowing is intended and present a cost-benefit analysis, detailing the economic and social benefits of the purpose to which the intended borrowing is to be applied.

According to him, the Federal Government should ensure that its fiscal and financial affairs are conducted in a transparent manner and accordingly ensure full and timely disclosure and wide publication of all transactions and decisions involving public revenues and expenditures and their implications for its finances.