Stop Condemning Government Borrowing Without Asking What It Is Used For — Finance Minister Taiwo Oyedele Defends FG’s Borrowing

The Minister of Finance and Coordinating Minister of the Economy, Prof. Taiwo Oyedele, has defended the Federal Government’s borrowing policy, arguing that debt should be seen as a strategic financial tool for economic growth rather than a moral failing.

Speaking at the 2026 Annual Conference of the Capital Market Academics of Nigeria (CMAN), Oyedele said the focus should not be on how much a country borrows but on how the borrowed funds are utilised.

“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 the minister, governments should not hesitate to borrow when the funds are invested in productive ventures that generate returns higher than the cost of borrowing.

He criticised analysts who condemn government borrowing without considering how the money is spent.

“So when analysts go on television and join the populist view to accuse the government of borrowing, you are doing a disservice,” Oyedele said.

He also urged Nigerian entrepreneurs to embrace external investors instead of insisting on owning 100 per cent of their businesses.

“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,” he said.

Oyedele further proposed the creation of a dedicated Commercial Dispute Resolution Tribunal to speed up business-related cases, saying lengthy court processes discourage investment. He added that Nigeria must strengthen its institutions, maintain policy consistency and improve investor confidence to attract more capital.