Don’t Criticise Borrowing Without Asking What It Funds — Finance Minister Defends FG’s Debt Strategy
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 its purpose and economic returns rather than viewed as a sign of failure.
Speaking at the 2026 Annual Conference of the Capital Market Academics of Nigeria (CMAN), Oyedele said borrowing remains a legitimate financial instrument for driving economic growth when properly managed and invested.
According to him, public discussions around debt often focus on the amount borrowed without sufficient attention to how the funds are deployed.
“In much of our public discourse, debt is spoken of as a moral failing rather than a financial instrument,” he said.
“The important question is not simply how much debt is accumulated, but what the debt is used for, the cost of borrowing, expected returns, and the repayment structure.”
Oyedele argued that governments should not avoid borrowing where funds are channelled into productive sectors capable of generating economic value that exceeds borrowing costs.
He also criticised public commentary that condemns government borrowing without considering the intended outcomes of the spending.
According to the minister, evaluating debt without examining the projects and economic impact behind it presents an incomplete picture of fiscal policy.
Beyond public finance, Oyedele encouraged Nigerian entrepreneurs to rethink ownership structures and become more open to external investment.
He noted that maintaining full ownership of a small enterprise may offer fewer long-term benefits than holding a meaningful stake in a larger and more scalable business.
The minister also proposed the establishment of a specialised Commercial Dispute Resolution Tribunal to accelerate the resolution of business-related cases.
He said prolonged legal processes continue to discourage investment and stressed that Nigeria must strengthen institutions, ensure policy consistency and improve investor confidence to attract sustainable capital inflows.
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