The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has defended the Federal Government’s borrowing strategy, saying debt should be viewed as a financial tool for driving economic growth rather than something inherently negative.
Speaking at the 2026 Annual Conference of the Capital Market Academics of Nigeria (CMAN), the minister said public discussions about government borrowing often focus on the size of the debt instead of how the borrowed funds are used.
Delivering the inaugural lecture after being inducted as a Fellow of CMAN, Edun explained that the real issue is whether borrowed funds are invested in projects capable of generating returns that exceed the cost of borrowing.
He noted that governments, businesses and individuals should not shy away from borrowing if the funds will be used for productive investments that create long-term economic value.
According to him, criticising borrowing without considering its purpose or expected returns presents an incomplete picture of economic management.
The minister also encouraged Nigerian entrepreneurs to embrace external investment instead of insisting on full ownership of their businesses.
He argued that many businesses fail to reach their full potential because owners are reluctant to dilute their equity, even when doing so could provide access to capital needed for expansion.
Edun urged academics and stakeholders in the capital market to promote financial literacy that highlights the responsible use of debt and equity financing while showcasing successful Nigerian companies that have grown through venture capital, private equity and public listings.
On improving Nigeria’s business environment, the minister proposed the establishment of a dedicated Commercial Dispute Resolution Tribunal to handle business-related cases more efficiently.
He observed that commercial disputes currently pass through the regular court system, with some cases taking as long as 15 years to reach final judgment, a situation he described as harmful to investment and economic growth.
According to him, the proposed tribunal should consist of judges and arbitrators with expertise in commercial, financial and capital market matters and operate within clearly defined timelines.
He also recommended the use of digital case management systems, regular publication of performance reports and closer integration with arbitration and mediation processes to ensure faster dispute resolution.
Edun further stressed that strengthening institutions, maintaining consistent economic policies and improving investor confidence are essential to attracting global investment into Nigeria.
Earlier at the conference, the Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, called for stronger collaboration between regulators and academics, saying evidence-based research is critical for developing effective financial market regulations.
He noted that academic research provides valuable insights that can help shape policies capable of responding to changes in Nigeria’s capital market.
Agama also highlighted ongoing reforms in the sector following the implementation of the Investments and Securities Act 2025 and the new 10-year Capital Market Master Plan.
Also speaking, the President of the Capital Market Academics of Nigeria, Prof. Uche Uwaleke, advocated stronger partnerships between universities and the financial services industry to promote innovation and support national economic development.
He urged the Federal Ministry of Education and the National Universities Commission to recognise industry experience alongside academic publications in the promotion of lecturers in professional disciplines.
Uwaleke also encouraged financial 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 establish structured research fellowship and sabbatical programmes that would strengthen collaboration between academia and policymakers.
