Obasanjo Slams Tinubu Over Borrowing, Says Debt Destroys Generations
'Absolute Nonsense’: Obasanjo Criticises Tinubu Over Borrowing Policy
Former President Olusegun Obasanjo has criticised President Bola Tinubu over his position on government borrowing, describing the president's assertion that borrowing is not leprosy as “absolute nonsense”.
Obasanjo made the remarks on Friday in Abeokuta, Ogun State, while speaking at the Ajibosin Platform, a public forum themed “Leveraging Artificial Intelligence to Solve Grassroots Problems and Accelerate National Development”.
The former president argued that excessive borrowing could have devastating consequences for future generations, insisting that its impact was worse than that of leprosy.
In April, Tinubu defended his administration's borrowing policy, maintaining that borrowing should not automatically be considered a negative economic practice.
Speaking at the State House during a meeting with Plateau State leaders led by Governor Caleb Mutfwang and All Progressives Congress (APC) National Chairman Nentawe Yilwatda, Tinubu said his administration would borrow whenever necessary.
“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 said.
However, reacting to the president's position, Obasanjo argued that debt could affect entire generations rather than individuals.
“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,” he said.
Obasanjo also questioned Nigeria's economic performance over the past decades, particularly the depreciation of the naira against the United States dollar.
Recalling when he established his farm 47 years ago, the former president said the exchange rate at the time was approximately N1 to $1.85.
“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.
He further questioned the knowledge and decision-making capacity of Nigeria's political leadership, asking whether those in positions of authority understood the country's challenges and had the ability to address them.
“What do our leaders know? And what do they not know? And from what they know, what can they do for us?” Obasanjo asked.
The former president also criticised Nigeria's reliance on international financial institutions, particularly the World Bank and the International Monetary Fund (IMF).
He argued that the institutions' policies were not necessarily designed to address Nigeria's unique economic circumstances, recalling how the country was discouraged from providing agricultural subsidies despite the support available to farmers in developed nations.
“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.
Obasanjo also cautioned against blindly adopting economic recommendations from foreign-trained experts, stressing the importance of considering Nigeria's local realities when formulating economic policies.
His comments have brought renewed attention to the debate over Nigeria's borrowing strategy, rising public debt and the country's long-term economic sustainability.