Nigeria’s Borrowing: Obasanjo Challenges Tinubu, Warns Debt Could Hurt Generations

• Nigeria’s borrowing policy has drawn criticism from former President Olusegun Obasanjo, who challenged President Bola Tinubu’s defence of loans and warned of consequences for future generations.

Former President Olusegun Obasanjo has criticised President Bola Tinubu’s position on government borrowing, warning that excessive debt could impose a lasting burden on generations of Nigerians.

Obasanjo spoke on Friday, October 30, at the third Ajibosin Annual Symposium, held at the Olusegun Obasanjo Presidential Library in Abeokuta, Ogun State. The event examined how artificial intelligence could help address grassroots challenges and support national development.

The former president challenged Tinubu’s earlier comparison of borrowing with leprosy, arguing that the consequences of public debt could extend far beyond those responsible for taking the loans.

“Debt is worse than leprosy. Because leprosy destroys only one person. Debt destroys generations,” Obasanjo said.

His remarks followed Tinubu’s request for legislative approval of a supplementary external borrowing programme worth approximately $20.52 billion and €1.04 billion. The request was presented to the Senate on Tuesday, October 27, through a letter read by Senate President Godswill Akpabio.

The proposed financing covers projects and programmes in sectors including power, transportation, healthcare, education, agriculture and water supply. It also includes security, employment initiatives and financial management reforms. The figures concern a borrowing request, rather than confirmation that the funds have already been disbursed.

Tinubu had defended further borrowing on Thursday, October 29, arguing that sustained infrastructure investment was necessary to support Nigeria’s ambition of becoming a $1 trillion economy by 2030.

In a statement outlining his administration’s infrastructure and growth strategy, the president said the value created through borrowed funds should be central to assessing the policy.

He identified roads, electricity infrastructure and port improvements among the investments intended to support businesses, connect economic centres and create employment. These included the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway and upgrades to major commercial ports in Lagos.

The president maintained that such projects, alongside spending on healthcare, education and vocational training, would improve productivity and expand opportunities for future generations. Those benefits remain the administration’s stated expectations for the investments.

Obasanjo’s criticism also extended to Nigeria’s reliance on international financial institutions. He questioned whether recommendations from the World Bank and International Monetary Fund adequately reflected the country’s circumstances.

The former president argued that Nigeria needed economic decisions grounded in its domestic realities, rather than assuming that externally promoted policies would resolve its development challenges.