Former President Olusegun Obasanjo has expressed concern over Nigeria’s mounting debt, asserting that the relief gained from the Paris Club during his tenure was allegedly mismanaged by successive administrations. Obasanjo stated that Nigeria and other African countries might face challenges securing debt relief due to their extensive debt burdens.
Nigeria’s public debt reached N87.91tn as of September 2023, according to the Debt Management Office. The former President suggested that mismanagement of past debt relief efforts could hinder future administrations from obtaining similar gestures.
During his tenure in 2003, Obasanjo secured a debt relief agreement with the Paris Club, leading to a reduction of Nigeria’s debt stock by $30bn. However, he now contends that mismanagement has left the country burdened with substantial and undeserved debt.
Speaking at an event with the 2023 awardees of the Future Africa Leaders Foundation, Obasanjo cautioned against falling into the trap of debt, emphasizing that leadership remains a critical issue facing the continent. He stated, “The coming generations will have no choice but to pay the current debt being incurred by different countries in the continent.”
Commending Pastor Chris Oyakhilome’s initiative in building leaders, Obasanjo emphasized the need for leaders to set good examples, be bold and courageous in decision-making, accept mistakes, and learn from them. He encouraged realistic dream pursuit for positive development.
In a related development, at the Christian Association of Nigeria Ogun State’s 5th Thanksgiving service, Obasanjo expressed hope that Nigeria’s socio-economic situation could improve in four years through prayers and thanksgiving. He encouraged gratitude and optimism, stating, “Things that are bad today may be good tomorrow.”
While Nigeria’s debt stock remains within sustainable limits, concerns have been raised about the high debt service-to-revenue ratio. Economists and experts have criticized the government for accumulating large debt after previous relief efforts and urged a shift towards revenue generation.
The Minister of Finance, Wale Edun, recently emphasized the government’s commitment to reducing reliance on borrowing and focusing on revenue generation. Economists have called for fiscal discipline and a balance between expenditure and revenue to ensure a sustainable economic trajectory.
