The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has urged Nigerians to stop criticising government borrowing without considering how such loans are deployed, insisting that public debt should be assessed based on its economic impact rather than its size.
Speaking on Tuesday in Abuja while delivering his inaugural lecture as a Fellow of the Capital Market Academics of Nigeria (CMAN) during the association’s 2nd Biennial Conference, the minister said borrowing is a legitimate financial tool for development when used responsibly.
The lecture was titled “The Nigerian Capital Market as a Catalyst for Equitable and Inclusive Growth.”
According to him, debt should not be viewed as a moral failure but evaluated based on its purpose, cost, expected returns and repayment terms.
“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.
The minister criticised what he described as the growing tendency among analysts and commentators to condemn every government borrowing without examining whether the funds are invested in productive projects capable of generating long-term economic returns.
He argued that governments and businesses that borrow to finance productive assets capable of generating returns above the cost of capital are making rational economic decisions, warning that refusing to borrow under such circumstances could mean losing valuable growth opportunities.
The minister also challenged Nigeria’s business culture, noting that many entrepreneurs are unwilling to dilute ownership by bringing in external investors, even when doing so would enable their businesses to expand.
According to him, owning 100 per cent of a small enterprise often creates less value than holding a significant stake in a larger, well-capitalised company.
Beyond borrowing, the minister outlined what he described as the “Seven Laws of Capital Attraction,” stressing that investors are drawn more by policy consistency, strong institutions, the rule of law and trust than by tax incentives.
He maintained that capital seeks predictable returns rather than merely the highest returns, warning that inconsistent policies, foreign exchange uncertainty, regulatory reversals and weak contract enforcement discourage investment more than moderate tax rates.
“Capital hates uncertainty more than taxation,” he said.
The minister further argued that sustainable investment flows to countries with strong institutions—not individual political leaders—emphasising the importance of an independent judiciary, a credible central bank and an efficient public service.
To improve investor confidence, he proposed the establishment of a specialised Commercial Dispute Resolution Tribunal to handle business disputes within clearly defined timelines.
He noted that commercial cases currently take an average of 15 years to pass through Nigeria’s High Court, Court of Appeal and Supreme Court, creating uncertainty and increasing the cost of doing business.
According to him, the proposed tribunal should comprise judges and arbitrators with expertise in commercial, financial and capital market matters, supported by digital case management systems and mandatory timelines for dispute resolution.
He added that speedy resolution of commercial disputes is critical because virtually every financial instrument—from bonds and syndicated loans to private placements and structured notes—is built on enforceable contracts.
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 explained to investors.
Meanwhile, Chairman of the Senate Committee on Capital Market, Senator Osita Izunaso, expressed concern over the poor level of participation by Nigerian companies in the capital market.
He lamented that out of more than four million registered companies in Nigeria, only about 150 are listed on the Nigerian Exchange, describing the situation as unacceptable.
“It is regrettable that of over four million companies registered in Nigeria, only about 150 are listed. This is absolutely wrong,” Izunaso said.
“How do we develop the capital market if investors from outside the country look at our listing board and see only about 150 companies? Something has to change.”
Izunaso said the National Assembly had fulfilled its responsibility by passing the Investments and Securities Act 2025, which modernises Nigeria’s capital market framework, strengthens investor protection and enhances market integrity.
He called on Capital Market Academics of Nigeria to bridge the gap through research, investor education, teaching and policy advocacy.
President of the Institute of Capital Market Studies, Prof. Uche Uwaleke, said Nigeria possesses the intellectual capacity needed to deepen its financial markets but lacks effective collaboration between academia and industry.
He called for stronger partnerships among universities, regulators, government institutions and financial market operators, recommending that universities give greater recognition to industry experience by engaging retired bankers and investment professionals as adjunct lecturers.
Uwaleke also urged the Central Bank of Nigeria, Securities and Exchange Commission, Nigeria Deposit Insurance Corporation and other regulators to institutionalise sabbatical opportunities for academics to undertake policy-driven research.
He further advocated the establishment of a national financial markets research framework to support studies on capital market development, infrastructure financing, pension reforms, financial inclusion and sustainable finance.
Director-General of the Securities and Exchange Commission, Dr. Emomotimi Agama, described CMAN as a vital bridge between academia and the capital market, saying sound regulation depends on quality research and evidence-based policy.
Agama disclosed that the Commission is finalising a new 10-year capital market master plan, stressing that the ongoing reforms require deeper research, critical thinking and stronger collaboration with academics.
Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Mukhail Adetokunbo Abiru, also called for closer engagement between academics and the SEC, describing the capital market as a critical vehicle for financing Nigeria’s economic growth.
The conference brought together academics, regulators and industry stakeholders to explore strategies for deepening Nigeria’s capital market and strengthening collaboration between policymakers and the academic community.
