The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has faulted Nigerians, especially analysts and commentators, for attacking government borrowing without considering the purpose, cost and expected return on such debt.
Oyedele spoke in Abuja on Tuesday at the Fellowship Award Ceremony and 2nd Biennial Conference of the Capital Market Academics of Nigeria.
He said, “When analysts go on TV and join the populist view to accuse the government of borrowing, you are doing a disservice. The relevant question is never simply how much debt. It is always debt for what and what cost, against what return, and repaid on what terms?
“A nation, a state, or a business that borrows to finance a productive asset generating returns above the cost of that capital is not behaving recklessly; it is behaving rationally.”
The minister, who delivered a lecture titled, “Rethinking Capital Mobilisation for National Development: Why Should Capital Choose Nigeria,” said Nigeria’s negative perception of debt had become a cultural barrier to economic growth.
