The Group of 24 has raised alarm that the widening conflict in the Middle East is inflicting serious damage on the global economy, with cascading effects on Nigeria and other developing nations struggling to maintain growth momentum.
Addressing delegates at the World Bank and International Monetary Fund Spring Meetings in Washington DC, the coalition of developing countries—which includes Nigeria and numerous African economies—delivered a stark assessment of mounting global economic fragility. The group pointed directly to the Middle East conflict as a primary driver of deteriorating conditions worldwide.
Supply Chain Disruptions and Energy Market Volatility
According to the G-24, the conflict has triggered significant disruptions to global supply chains, with energy markets bearing the heaviest impact. Civilian infrastructure in conflict zones has sustained substantial damage, while populations face deteriorating living conditions.
"The war in the Middle East is causing deterioration in the well-being of affected populations, as well as damage to civilian infrastructure," the group stated in its formal presentation. The coalition noted that these developments have exacted "a significant toll on an already weak global economy, with particularly devastating effects on emerging markets and developing countries."
Following a period of tepid but resilient growth, the G-24 warned that global economic conditions are now deteriorating sharply. The group projects global growth to decline in 2026 relative to 2025, with sustained disruptions likely to push both core and non-core inflation upward through elevated energy, food, and fertilizer prices.
Pressure on Developing Economies
The coalition emphasized the critical importance of safeguarding international maritime routes and called for an immediate cessation of attacks on energy infrastructure, warning that rebuilding damaged assets demands substantial time and investment.
Amid these challenges, the G-24 acknowledged efforts by OPEC Declaration of Cooperation countries to stabilize oil supply through alternative export routes. However, the medium-term global growth outlook remains uncertain, with mounting pressure on current accounts of oil-importing nations and rising borrowing costs driven by potential interest rate hikes and exchange rate volatility.
Tighter financial conditions and heightened risk aversion could reduce private capital flows to emerging markets, complicating economic management for countries like Nigeria that depend on foreign investment.
"While domestic fiscal and monetary measures remain critical, traditional policy responses such as contracting demand or allowing currency depreciation may be insufficient to absorb the scale of external shocks," the group cautioned.
Calls for Multilateral Action
The G-24 underscored the urgent need for stronger multilateral support and increased development assistance. The coalition called for a more robust Global Financial Safety Net anchored by a well-resourced International Monetary Fund.
Specific demands included timely completion of the 16th General Review of Quotas and meaningful progress on the 17th review. The group insisted that quota reforms must enhance the voice and representation of emerging and developing economies while protecting the份额份额 of the poorest member nations.
The coalition also urged the IMF to remain proactive and flexible in responding to evolving global risks, including adapting its lending toolkit, strengthening surveillance mechanisms, and reviewing key frameworks such as the Low-Income Countries Debt Sustainability Framework and programme design policies.
Additional recommendations from the G-24 centered on reforming IMF charges and surcharges, exploring mechanisms for regular issuance of Special Drawing Rights to support vulnerable economies, and ensuring the World Bank Group maintains its focus on job creation, infrastructure development, and innovative financing as essential tools for poverty reduction.