The Minister of Finance and Coordinating Minister of the Economy, Prof. Taiwo Oyedele, has defended the Federal Government’s borrowing policy, arguing that public debt should be assessed based on how borrowed funds are utilised rather than the amount borrowed.
Speaking at the 2026 Annual Conference of the Capital Market Academics of Nigeria (CMAN), Oyedele described debt as a financial instrument that can support economic growth when managed responsibly.
According to him, borrowing should not automatically be viewed as a sign of poor governance.
“In much of our public discourse, debt is spoken of as a moral failing rather than a financial instrument,” he said.
The minister explained that the key questions should be whether the borrowed funds are invested in productive projects, the cost of the loans, the expected returns and the repayment terms.
“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,” Oyedele stated.
He maintained that governments should not hesitate to borrow if the funds are directed towards investments capable of generating returns that exceed the cost of borrowing.
Oyedele also criticised analysts who condemn government borrowing without first examining how the funds are being spent.
“When analysts go on television and join the populist view to accuse the government of borrowing, you are doing a disservice,” he said.
Beyond public finance, the minister encouraged Nigerian entrepreneurs to embrace external investment rather than insisting on retaining full ownership of their businesses.
According to him, owning a significant stake in a larger, growing company often delivers greater long-term value than owning 100 per cent of a small business.
He also proposed the establishment of a Commercial Dispute Resolution Tribunal to speed up the resolution of business-related cases, noting that prolonged court processes discourage investment. Oyedele added that strengthening institutions, maintaining policy consistency and improving investor confidence are essential steps toward attracting more domestic and foreign investment into Nigeria.
