Former President Olusegun Obasanjo has strongly dismissed President Bola Tinubu's defense of national borrowing, labeling the current administration's rationale as absolute nonsense and warning that excessive debt ruins unborn generations.
Obasanjo made these remarks on Friday, October 30, while addressing an audience at the Ajibosin Platform, a public discourse event held in Abeokuta, the capital of Ogun State.
What led to Obasanjo's remarks?
The friction stems from comments made by President Tinubu in April of this year, during which the leader justified his government's loan acquisition strategy. At the time, the President insisted that borrowing was a necessary fiscal tool, stating that obtaining loans was not akin to contracting leprosy, provided the administration worked diligently to service and repay the obligations.
Challenging this perspective, Obasanjo argued that public debt poses a significantly graver threat to society than the historical disease. According to the former leader, while leprosy typically impacts an individual, a heavy debt burden compromises the economic future of entire populations and generations.
Why is public debt a growing concern in Nigeria?
Obasanjo's strong rebuke follows recent fiscal developments in Abuja, where the executive arm requested legislative backing from the National Assembly for a substantial supplementary external borrowing plan. The financial package includes $20.52 billion and €1.04 billion earmarked for critical infrastructure projects and developmental programs across multiple sectors of the economy.