Former President Olusegun Obasanjo has warned President Bola Tinubu against excessive government borrowing, declaring that mounting public debt could have devastating consequences for future generations.
Obasanjo described debt as worse than leprosy, disagreeing with Tinubu’s position that borrowing is not inherently harmful as long as the government has the capacity to repay its loans.
The former President made the remarks on Friday at the Ajibosin Platform, a public forum held in Abeokuta, Ogun State, under the theme, “Leveraging Artificial Intelligence to Solve Grassroots Problems and Accelerate National Development.”
His comments come days after President Tinubu sought the National Assembly’s approval for fresh external loans totalling $20.52bn and €1.045bn under the Federal Government’s 2026–2027 Supplementary External Borrowing Plan.
According to PUNCH Online, the President’s request was conveyed in a letter read by Senate President Godswill Akpabio during plenary on Tuesday.
The proposed loans are expected to finance projects in critical sectors, including infrastructure, agriculture, healthcare, education, water supply, security, employment generation and financial management reforms.
Tinubu explained that the additional external financing was necessary to address Nigeria’s infrastructure deficit and bridge funding gaps affecting development projects. The request was subsequently referred to the Senate Committee on Local and Foreign Debts for consideration.
Obasanjo warns Tinubu against Excessive Borrowing
The latest criticism followed Tinubu’s defence of his administration’s borrowing policy in April, when he maintained that taking loans should not automatically be considered a negative development.
“If we have to borrow, we borrow. Borrowing is not leprosy, we just have to work hard to be able to pay for it,” the President had said.
Tinubu made the statement during a meeting with Plateau State leaders, led by Governor Caleb Mutfwang and the All Progressives Congress National Chairman, Prof. Nentawe Yilwatda, at the State House.
However, Obasanjo rejected the President’s comparison, warning that excessive debt could affect generations yet unborn.
“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 said.
Obasanjo Questions Nigeria’s Economic Performance
The former President also expressed concern over the depreciation of the naira, recalling the exchange rate when he established his farm 47 years ago.
According to Obasanjo, the naira exchanged at approximately ₦1 to $1.85 at the time, contrasting sharply with the currency’s current depreciation.
Questioning Nigeria’s economic performance over the decades, he said:
“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?”
Olusegun Obasanjo also questioned the knowledge and capacity of Nigeria’s political leaders to address the country’s economic challenges and improve citizens’ welfare.
“What do our leaders know? And what do they not know? And from what they know, what can they do for us?” he asked.
Obasanjo Questions Nigeria’s Reliance on World Bank, IMF
Obasanjo further criticised Nigeria’s dependence on economic policies and recommendations from international financial institutions, particularly the World Bank and the International Monetary Fund (IMF).
He argued that the institutions were established before Nigeria gained independence and questioned whether their economic prescriptions adequately reflected the country’s unique circumstances.
“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 cautioned against relying heavily on external economic policies without considering Nigeria’s domestic realities, development priorities and economic needs.
His comments have brought renewed attention to the debate over government borrowing, debt sustainability, currency depreciation and the long-term economic consequences of Nigeria’s fiscal policies.
