FG borrowing not immoral, says Finance Minister

— Seeks commercial dispute tribunal to boost investment

By Obas Esiedesa, Abuja

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

Oyedele also advocated the establishment of a dedicated Commercial Dispute Resolution Tribunal to fast-track the resolution of business disputes and improve Nigeria’s investment climate.

Speaking at the 2026 Annual Conference of the Capital Market Academics of Nigeria (CMAN), themed “Strategies for Building an Equitable and Inclusive Economic Growth in Nigeria,” the minister, who delivered the inaugural lecture following his induction as a Fellow of CMAN, argued that public criticism of government borrowing often ignores the more critical issue of how borrowed funds are utilised.

According to him, the key consideration is not the size of a country’s debt but whether borrowed funds are invested in productive ventures capable of generating returns that exceed the cost of borrowing.

“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.”

He maintained that governments, businesses and individuals should embrace responsible borrowing when it is used to finance productive investments, warning that refusing to borrow under such circumstances amounts to a missed economic opportunity.

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

The minister also criticised the tendency of many Nigerian entrepreneurs to retain complete ownership of their businesses rather than attract external investors.

According to him, many businesses remain small because their owners are unwilling to dilute equity, despite the growth opportunities that external capital provides.

“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.

He urged academics and capital market professionals to promote financial literacy that encourages the productive use of debt and equity financing, while highlighting successful Nigerian companies that expanded through private equity, venture capital and public listing.

Calls for commercial dispute tribunal

Oyedele also proposed the establishment of a specialised Commercial Dispute Resolution Tribunal to complement Nigeria’s existing investment dispute resolution mechanisms.

He explained that while Nigeria has investment protection frameworks and arbitration systems for disputes involving investors and government, ordinary commercial disputes remain tied to the conventional court system.

According to him, commercial cases often spend up to 15 years moving through the High Court, Court of Appeal and Supreme Court, a situation he described as detrimental to business and investment.

“I therefore propose the establishment of a dedicated Commercial Dispute Resolution Tribunal, distinct from and complementary to our existing investment tribunal architecture,” he said.

He suggested that the proposed tribunal should comprise judges and arbitrators with expertise in commercial, financial and capital market matters and operate under strict timelines for the resolution of cases.

The tribunal, he added, should deploy digital case management systems, publish performance metrics and work alongside arbitration and mediation mechanisms to ensure speedy dispute resolution.

“Every capital market instrument—a bond, a structured note, a syndicated loan—is, at its core, a contract. The depth of a capital market cannot exceed the confidence that contracts will be enforced swiftly and impartially,” he said.

Oyedele further stressed the need for Nigeria to strengthen its institutions, maintain policy consistency and improve its investment narrative to attract global capital.

According to him, investors increasingly compare Nigeria with other emerging economies, while capital flows to jurisdictions with strong institutions, predictable policies and high levels of trust.

SEC seeks research-driven regulation

Earlier, the Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, called for stronger collaboration between regulators and academics, describing research-driven policymaking as essential for deepening Nigeria’s capital market and promoting inclusive economic growth.

Agama said the Capital Market Academics of Nigeria serves as an important bridge between academic research and financial market regulation.

“I have long believed that good regulation begins with good thinking. The policies we make at the Securities and Exchange Commission are only ever as strong as the evidence and ideas that inform them,” he said.

He noted that academic research generated through conferences, journals and peer-reviewed studies provides the foundation for evidence-based regulation capable of responding to the changing dynamics of Nigeria’s financial markets.

Agama added that the capital market is currently undergoing significant reforms following the enactment of the Investments and Securities Act, 2025, and the implementation of a new 10-year Capital Market Master Plan.

CMAN seeks stronger academia-industry partnership

Also speaking, the President of the Capital Market Academics of Nigeria, Prof. Uche Uwaleke, called for stronger collaboration between academia and the financial services industry, saying such partnerships are critical to deepening Nigeria’s financial markets and accelerating economic growth.

Uwaleke said Nigeria possesses abundant academic expertise and extensive industry experience but lacks a structured framework to effectively connect both sectors for national development.

According to him, countries with resilient financial systems have achieved success through sustained collaboration among universities, regulators, government institutions and industry stakeholders.

He described CMAN as Nigeria’s leading financial market think tank, established to ensure that academic research produces practical solutions to the country’s economic challenges.

Uwaleke urged the Federal Ministry of Education and the National Universities Commission (NUC) to recognise relevant industry experience alongside academic publications in the appointment and promotion of lecturers in professionally oriented disciplines such as Banking, Finance, Insurance, Accounting and Capital Market Studies.

He also recommended that universities recruit accomplished retired bankers, investment professionals and capital market practitioners as adjunct lecturers to strengthen teaching, improve curriculum relevance and better prepare graduates for the workplace.

In addition, he called on regulators, including the Central Bank of Nigeria (CBN), SEC, National Insurance Commission (NAICOM), National Pension Commission (PenCom) and the Nigeria Deposit Insurance Corporation (NDIC), to institutionalise structured sabbatical and research fellowship programmes for academics.

According to him, such initiatives would enable scholars to undertake policy-oriented research while providing regulators with independent expertise to improve policy formulation and regulatory effectiveness.