The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele has urged Nigerians to stop viewing public borrowing as inherently negative, arguing that debt should be assessed by what it finances rather than its size.
Oyedele said this while delivering his inaugural lecture as a Fellow of the Capital Market Academics of Nigeria during the association’s 2nd Biennial Conference held on Tuesday in Abuja with the theme, “The Nigerian capital market as a catalyst for equitable and inclusive growth.”
Oyedele said the country’s long-standing aversion to debt has become a major obstacle to economic growth, investment mobilisation and business expansion.
According to him, borrowing should not be treated as a moral failure but as a financial tool capable of driving development when deployed responsibly.
He criticized what he described as the growing tendency by analysts and commentators to condemn every instance of government borrowing without considering whether the funds are being invested in productive projects capable of generating returns.
“The relevant question is never simply how much debt there is. It is always debt for what, at what cost, against what return and repayable on what terms,” he said.
Oyedele argued that governments and businesses that borrow to finance productive assets capable of generating returns above the cost of capital are acting rationally, adding that refusing to borrow under such conditions could amount to forfeiting valuable growth opportunities.
He also challenged Nigeria’s business culture, saying many entrepreneurs are reluctant to dilute ownership by bringing in external investors, even when doing so would enable their businesses to scale.
According to him, owning 100 per cent of a small enterprise often delivers less value than holding a significant stake in a much larger and better-capitalised company.
Beyond the issue of debt, the finance minister outlined what he described as the “seven laws of capital attraction,” stressing that investors are driven primarily by trust, policy consistency, strong institutions and the rule of law rather than generous tax incentives.
He said capital seeks predictable returns instead of simply chasing the highest returns, warning that countries with inconsistent policies often lose investors to jurisdictions offering lower but more stable returns.
“Capital hates uncertainty more than taxation,” he said, explaining that policy reversals, regulatory inconsistency, foreign exchange uncertainty and weak contract enforcement discourage investment more than moderate tax rates.
Oyedele further argued that investors commit long-term funds to countries with strong institutions rather than to individual political leaders, noting that an independent judiciary, credible central bank and efficient bureaucracy are critical to attracting sustainable capital.
To strengthen investor confidence, he proposed the establishment of a dedicated Commercial Dispute Resolution Tribunal to handle business-related disputes within strict timelines.
According to him, Nigeria’s current judicial system takes an average of about 15 years to resolve commercial disputes through the High Court, Court of Appeal and Supreme Court, making the country less attractive to investors.
He said such prolonged litigation creates uncertainty, discourages investment and raises the cost of doing business.
The proposed tribunal, he explained, should consist of judges and arbitrators with specialised expertise in commercial, financial and capital market matters, supported by digital case management systems and mandatory timelines for resolving disputes.
Oyedele said the tribunal would complement existing investment protection mechanisms by resolving disputes between private businesses, suppliers, joint venture partners and other commercial entities more efficiently.
He argued that every financial instrument from bonds and syndicated loans to private placements and structured notes is ultimately founded on enforceable contracts, making speedy dispute resolution essential for deepening Nigeria’s capital market.
The minister also urged government officials, professionals and the media to communicate economic reforms more effectively, warning that Nigeria often pays a “perception premium” because positive reforms are poorly communicated to investors.
According to him, attracting long-term investment requires not only sound economic policies but also stronger institutions, policy consistency, faster justice delivery and a shift in public attitudes towards debt and private capital.
