Former President Olusegun Obasanjo has issued a scathing critique of President Bola Tinubu’s economic policies, sharply rejecting the administration’s stance on external borrowing and warning that mounting national debt will ruin future generations.
Speaking on Friday in Abeokuta, Ogun State, at the Ajibosin Platform—a public forum centered on leveraging artificial intelligence for national development—Obasanjo dismissed the President’s recent assertion that public debt is harmless so long as the government retains repayment capacity.
Obasanjo directly countered Tinubu’s earlier framing, describing national debt as a far more destructive force than disease.
“And for anybody to say debt is no leprosy is absolute nonsense,” Obasanjo stated. “Debt is worse than leprosy. Because leprosy destroys only one person; debt destroys generations.”
Sparked by New $21B Loan Request
The former President’s remarks follow days after President Tinubu submitted a massive request to the National Assembly, seeking authorization for fresh external loans totaling $20.52 billion and €1.045 billion under the Federal Government’s 2026–2027 Supplementary External Borrowing Plan.
The request, read during Tuesday’s Senate plenary by Senate President Godswill Akpabio, has since been referred to the Senate Committee on Local and Foreign Debts. According to the presidency, the funds are intended to bridge critical budget deficits and finance projects in infrastructure, security, healthcare, education, agriculture, and job creation.
Tinubu had previously defended his administration’s reliance on foreign debt in April during a meeting at the State House, asserting: “If we have to borrow, we borrow. Borrowing is not leprosy; we just have to work hard to be able to pay for it.”
Decrying Devaluation and Foreign Economic Prescriptions
Beyond national debt, Obasanjo expressed grave concern over the historical collapse of Nigeria’s currency, citing his personal experience as a commercial farmer over the past four decades.
“When I started my farm 47 years ago, naira to the dollar was one naira to $1.85,” Obasanjo said. “What has Nigeria done in 47 years that we now have 1,500 naira to the dollar? What have we done?”
He went on to question the vision and executive capacity of Nigeria’s current political leadership, asking: “What do our leaders know? And what do they not know? And from what they know, what can they do for us?”
Obasanjo also cautioned the federal government against over-reliance on policy recommendations from multilateral institutions like the World Bank and the International Monetary Fund (IMF), arguing that their frameworks fail to accommodate Nigeria’s unique local realities.
“The World Bank and IMF were not designed for us. They were not built by us. They were built before we became independent, and those are the people who would determine what we do,” he warned.
