By Maryanne Awuya
The Minister of Finance and Coordinating Minister of the Economy, Prof. Taiwo Oyedele, has defended the Federal Government’s borrowing policy, saying debt should be seen as a strategic financial instrument for driving economic growth rather than a sign of fiscal failure.
Speaking at the 2026 Annual Conference of the Capital Market Academics of Nigeria (CMAN), themed “Strategies for Building an Equitable and Inclusive Economic Growth in Nigeria,” Oyedele said the real issue is not how much a country borrows but how effectively the borrowed funds are deployed.
Persecondnews correspondent at the event reports that the minister, who delivered the inaugural lecture after being inducted as a Fellow of CMAN, said public debate on government borrowing often overlooks the importance of investing debt in projects capable of generating returns that exceed borrowing costs.“In much of our public discourse, debt is spoken of as a moral failing rather than a financial instrument,” he said.
“The relevant question is never simply how much debt. It is always debt for what, at what cost, against what return, and repaid on what terms.”
According to him, governments, businesses and individuals should not shy away from responsible borrowing if the funds are channelled into productive investments that create value and stimulate economic growth.
He argued that condemning every instance of government borrowing without considering its purpose does not support informed economic discourse.
The minister also urged Nigerian entrepreneurs to embrace equity financing by bringing in external investors instead of insisting on full ownership of their businesses.
He said many businesses remain small because their owners are reluctant to dilute ownership, despite the opportunities that private equity, venture capital and public listing offer for expansion.
“The desire to own 100 per cent of a small business will always lose in absolute terms to owning a meaningful share of a large one,” Oyedele said.
He called on academics and capital market stakeholders to promote financial literacy that encourages the productive use of both debt and equity financing while showcasing successful Nigerian businesses that have grown through external investment.
On improving the country’s investment climate, Oyedele proposed the establishment of a dedicated Commercial Dispute Resolution Tribunal to speed up the resolution of business-related disputes.
He noted that while Nigeria has mechanisms for resolving investment disputes involving government and investors, commercial disputes between private parties are still handled through the regular court system, where cases can take years to conclude.
According to him, commercial cases often spend up to 15 years moving through the High Court, Court of Appeal and Supreme Court, discouraging investment and increasing the cost of doing business.
Oyedele said the proposed tribunal should comprise judges and arbitrators with expertise in commercial, financial and capital market matters and operate within clearly defined timelines to ensure speedy resolution of disputes.
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