Former President Olusegun Obasanjo has taken a swipe at President Bola Tinubu over his administration’s borrowing policy, warning that excessive debt could mortgage Nigeria’s future and destroy generations yet unborn.
Obasanjo described debt as worse than leprosy, dismissing Tinubu’s argument that borrowing should not be considered harmful as long as the government has the capacity to repay.
The former president spoke on Friday at the third Ajibosin Annual Symposium, held at the Olusegun Obasanjo Presidential Library in Abeokuta, Ogun State. The symposium focused on leveraging Artificial Intelligence (AI) to solve grassroots problems and accelerate national development.
Tinubu had said in April that borrowing was not leprosy, arguing that the government would continue to obtain loans whenever necessary, provided it worked towards repaying them.
But Obasanjo strongly disagreed, describing the position as “absolute nonsense”.
He said, “And for anybody to say that debt is no leprosy is absolute nonsense. Debt is worse than leprosy because leprosy destroys only one person, whereas debt destroys generations.”
The former president also questioned Nigeria’s economic performance over the past decades, expressing concern over the continued depreciation of the naira.
Recalling that the naira exchanged at $1.85 when he established his farm 47 years ago, Obasanjo challenged the country’s leadership to explain how the currency had fallen to about ₦1,500 to the dollar.
“What has Nigeria done in 47 years that we now have ₦1,500 to a dollar? What have we done? What do our leaders know, and what do they not know? Of what they know, what can they actually do for us?” he queried.
Obasanjo, who secured about $30 billion in Paris Club debt relief for Nigeria during his presidency between 1999 and 2007, also questioned the country’s dependence on foreign economic prescriptions, particularly those of the World Bank and International Monetary Fund (IMF).
He argued that Nigeria must develop economic policies that reflect its peculiar circumstances rather than blindly adopt recommendations from international financial institutions.
AI could deepen Africa’s dependence
Meanwhile, the guest speaker, historian and public policy scholar, Dr Umar Ardo, warned that Artificial Intelligence could deepen Africa’s dependence on foreign powers if the continent failed to develop and control its technological infrastructure.
Ardo said Africa risked becoming a consumer of technologies controlled by external interests unless it invested in chip fabrication, data centres, African-owned datasets and stronger continental cooperation.
He warned that AI could become another instrument for managing and exploiting the continent rather than empowering African countries to determine their economic and technological future.
Tinubu defends fresh borrowing
Obasanjo’s criticism comes amid renewed debate over the Federal Government’s plan to secure fresh foreign loans.
Tinubu on Thursday defended his administration’s borrowing strategy, arguing that Nigeria needed long-term investments in critical infrastructure to achieve its ambition of becoming a $1 trillion economy by 2030.
In a statement titled, “From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy,” the President said the focus should be on the economic value created by borrowed funds rather than the amount obtained.
“The key question is not how much we borrow, but what we build, the value we create and the future we leave behind,” he said.
Tinubu listed the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid improvements and upgrades to major commercial ports in Lagos among the projects expected to benefit from the proposed borrowing.
He said the investments, alongside spending on healthcare, education and vocational training, would connect economic regions, reduce transportation costs, support agriculture and industries, and attract private investment.
According to him, the Lagos-Calabar Coastal Highway alone could reduce transportation costs along its route by between 15 and 20 per cent and contribute up to two per cent to Nigeria’s Gross Domestic Product through increased trade, tourism and industrial activities.
The President also projected that the highway would generate about 100,000 direct jobs in construction and engineering, alongside more than 150,000 indirect jobs in logistics, building materials and related sectors.
However, the Nigeria Labour Congress (NLC) has questioned the government’s latest borrowing plans, particularly its request to the National Assembly for approval to obtain $20.52 billion and €1.045 billion in external loans.
The labour union has challenged the rationale for additional borrowing despite the Federal Government’s claims of increased revenue following the removal of the petrol subsidy.
The fresh borrowing proposal covers the 2026–2027 period and is expected to finance infrastructure and other government programmes.
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