Obasanjo confronts Tinubu over loans, says debt is worse than leprosy and destroys generation

Toyyibat Qasim

Former President Olusegun Obasanjo has sharply criticized President Bola Tinubu’s lending policy, describing his claim that lending is not a leprosy as “absolute nonsense” and warning that rising debts could destroy generations of Nigerians..

Obasanjo, who has expressed concern about the country’s growing debt burden, argued that while leprosy destroys an individual, excessive indebtedness places a lasting financial burden on entire generations.

The former President made the remarks on Friday in Abeokuta, Ogun State, while speaking at the Ajibosin Platform, a public forum on the theme “Leveraging Artificial Intelligence to Solve Grassroots Problems and Accelerate National Development.”

He was reacting to Tinubu’s earlier statement that his administration would continue to borrow whenever necessary, insisting that borrowing should not be treated as a national taboo.

The President had made the statement in April during a meeting with Plateau State leaders at the State House, Abuja, led by Governor Caleb Mutfwang and National Chairman of the All Progressives Congress, Nentawe Yilwatda.

Tinubu had said, “If we have to borrow, let’s borrow. Borrowing is not leprosy, we just have to work hard to pay it off.”

But Obasanjo rejected the president’s argument, arguing that the consequences of excessive debt extend beyond the current administration and could undermine the economic prospects of future generations.

“And for someone to say that debt is not leprosy, that is absolute nonsense. Debt is worse than leprosy. Because leprosy only destroys one person. Debt destroys generations,” he said.

The former president’s criticism comes amid ongoing public debate over Nigeria’s rising public debt, the cost of servicing existing loans and growing pressure on government revenues.

Obasanjo also questioned the country’s economic performance over the years, using the dramatic depreciation of the naira against the United States dollar to illustrate what he described as Nigeria’s failure to achieve significant economic progress.

Recalling the exchange rate when he founded his farm nearly fifty years ago, he expressed concern that the country had moved from a position of relative monetary strength to steep depreciation.

“When I started my farm 47 years ago, the naira to a dollar was a naira to $1.85. Forty-seven years ago. What has Nigeria done in 47 years that we now have 1,500 naira to a dollar? What have we done?” he asked.

Obasanjo also questioned the competence and capacity of Nigeria’s political leadership, asking whether those entrusted with governing the country possessed the knowledge and skills needed to address its economic and development challenges.

“What do our leaders know? And what don’t they know? And from what they know, what can they do for us?” he asked.

Beyond the country’s debt policy, the former president criticized Nigeria’s dependence on the economic prescriptions of international financial institutions, particularly the World Bank and the International Monetary Fund.

He argued that policies promoted by institutions should not automatically be considered suitable for Nigeria, insisting that the country’s economic challenges and development priorities require solutions that reflect its peculiar circumstances.

According to him, the institutions were established before Nigeria gained independence and were not necessarily structured to address the specific economic realities of the country.

“The World Bank and the International Monetary Fund were not designed for us. They were not built by us. They were built before we became independent. And these are the people who will determine what we do,” he said.

The former president also recalled Nigeria’s experience with agricultural policies, arguing that the country had previously been discouraged from providing certain forms of support to farmers despite the extensive agricultural subsidies available in developed economies.

He accordingly cautioned against the unqualified adoption of economic recommendations by foreign-trained experts without examining their suitability to Nigeria’s circumstances.

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