By George Omagbemi
Former President Olusegun Obasanjo has criticised President Bola Tinubu’s borrowing policy, warning that excessive public debt could mortgage Nigeria’s future and impose a heavy burden on generations yet unborn.
Obasanjo spoke on Friday at the third Ajibosin Annual Symposium, held at the Olusegun Obasanjo Presidential Library in Abeokuta, Ogun State. The event focused on leveraging artificial intelligence to solve grassroots problems and accelerate national development.
Reacting to Tinubu’s earlier defence of government borrowing, the former president rejected the argument that borrowing was not inherently harmful if the country could repay its loans.
“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,” Obasanjo declared.
Tinubu had said in April that his administration would borrow when necessary, provided the government worked hard to repay its obligations.
The disagreement comes as the President seeks National Assembly approval for additional external loans of $20.52 billion and €1.05 billion under the proposed 2026–2027 Supplementary External Borrowing Plan. The proposed funds are intended to support infrastructure and other development projects.
Obasanjo also questioned Nigeria’s economic performance, citing the naira’s depreciation against the US dollar over several decades. He further criticised the country’s reliance on economic prescriptions from the World Bank and International Monetary Fund, urging leaders to develop policies suited to Nigeria’s circumstances.
While the Tinubu administration argues that borrowing can finance development, Obasanjo’s remarks highlight continuing concerns about debt sustainability, economic management and the long-term cost of government loans.
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