Nigeria's Government Defends Borrowing Amid Debt Rise

Taiwo Oyedele, the Minister of Finance and Coordinating Minister of the Economy, defended the Nigerian government's borrowing practices during a ceremony in Abuja on Tuesday. He stated that the government has never defaulted on its debts, despite criticisms from analysts regarding the rising debt profile.

As of May 2023, when President Bola Tinubu assumed office, Nigeria's total public debt stood at ₦87 trillion, with projections indicating it could rise to approximately ₦160 trillion by early 2026 due to new domestic and external borrowings and a depreciating naira. Oyedele emphasized that borrowing is a financial instrument rather than a moral failure, arguing that it is essential for financing growth and improving investor confidence.

He also proposed the creation of a national risk market to address business conflicts efficiently. Oyedele lamented the challenges faced by African nations in global financial markets, including high premiums on eurobonds, despite demonstrating consistent creditworthiness.