Former President Olusegun Obasanjo has described President Bola Tinubu’s defence of government borrowing as “absolute nonsense”, warning that Nigeria’s growing debt burden could destroy generations.
Obasanjo said debt was more dangerous than leprosy because its consequences extended beyond individuals to affect generations yet unborn.
The former president made the remarks on Friday at the Ajibosin Platform, a public forum held in Abeokuta, Ogun State, with the theme, “Leveraging Artificial Intelligence to Solve Grassroots Problems and Accelerate National Development”.
He was reacting to Tinubu’s comment in April that borrowing was not leprosy and that his administration would continue to obtain loans whenever necessary.
Speaking during a meeting with Plateau State leaders at the State House, the President had said, “If we have to borrow, we borrow. Borrowing is not leprosy, we just have to work hard to be able to pay for it.”
However, Obasanjo disagreed with the position, insisting that excessive borrowing could impose a lasting burden on future generations.
He said, “And for anybody to say debt is no leprosy, is absolute nonsense. Debt is worse than leprosy. Because leprosy destroys only one person. Debt destroys generations.”
The former president also questioned Nigeria’s economic performance over the past 47 years, particularly the sharp depreciation of the naira against the United States dollar.
Recalling the exchange rate when he established his farm, Obasanjo said the naira was significantly stronger at the time, expressing concern over the country’s economic direction.
“When I started my farm, 47 years ago, naira to the dollar was one naira to $1.85. Forty-seven years ago. What has Nigeria done in 47 years that we now have 1,500 naira to the dollar? What have we done?” he asked.
Obasanjo also questioned the capacity of political leaders to develop practical solutions to the country’s economic challenges.
“What do our leaders know? And what do they not know? And from what they know, what can they do for us?” he asked.
He further criticised Nigeria’s dependence on foreign financial institutions, particularly the World Bank and the International Monetary Fund, arguing that their economic prescriptions might not reflect the country’s peculiar realities.
According to him, Nigeria should not depend entirely on policies designed by institutions that were established before the country gained independence.
“World Bank and IMF were not designed for us. They were not built by us. They were built before we became independent. And that’s the people who would determine what we do,” he said.
The former president recalled that Nigeria had previously been discouraged from subsidising agriculture, despite what he described as extensive government support for farmers in developed countries.
He warned against blindly adopting economic recommendations from foreign-trained experts without carefully examining their suitability for Nigeria.
Obasanjo’s comments come amid public concerns over the country’s rising debt profile and the growing proportion of government revenue devoted to debt servicing.
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