Former President Olusegun Obasanjo has criticised President Bola Tinubu’s proposed $21 billion external borrowing plan, warning that Nigeria’s growing debt burden could mortgage the future of generations yet unborn.
Obasanjo described debt as more destructive than leprosy, directly rejecting Tinubu’s earlier defence of government borrowing and questioning the country’s economic management.
He spoke on Friday at the Ajibosin Platform public forum in Abeokuta, Ogun State, themed “Leveraging Artificial Intelligence to Solve Grassroots Problems and Accelerate National Development.”
The former president was reacting to Tinubu’s recent request for National Assembly approval of fresh external loans totalling $20.52 billion and €1.045 billion under the Federal Government’s 2026–2027 Supplementary External Borrowing Plan.
The proposal covers projects and programmes in critical sectors, including power, transportation, health care, education, agriculture, water supply and security.
Tinubu had defended his administration’s borrowing policy in April, insisting that loans should not be viewed negatively if the government could repay them.
“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 during a meeting with Plateau State leaders at the Presidential Villa in Abuja.
However, Obasanjo dismissed the comparison, warning that the consequences of excessive borrowing extend far beyond the present generation.
“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 linked Nigeria’s economic challenges to the growing number of children excluded from formal education, warning that the country risked creating a deeper social and economic crisis if it failed to address the problem.
He cited the estimated 24 million out-of-school children in Nigeria, describing them as a looming national disaster.
“If you are looking for the disasters of tomorrow, these children represent one of them,” he warned.
The former president also questioned Nigeria’s economic performance over the past four decades, particularly the sharp depreciation of the naira.
Recalling when he established his farm nearly 47 years ago, Obasanjo said the naira exchanged at about N1 to $1.85, contrasting that with the currency’s subsequent loss of value.
“What has Nigeria done in 47 years that we now have N1,500 to the dollar? What have we done?” he asked.
He further questioned the capacity of the country's political leadership to develop effective policies that would improve citizens’ living conditions.
“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’s comments have renewed attention on the debate over Nigeria’s borrowing strategy, the sustainability of its public debt and the long-term implications of rising debt obligations for economic development.
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