Your entire generation will pay’ — Obasanjo fumes over Nigeria’s increasing debt
‘Your entire generation will pay’ — Obasanjo fumes over Nigeria’s increasing debt
Former President Olusegun Obasanjo has warned that Nigeria’s increasing debt burden will be paid by the present generation, their children and their grandchildren if urgent steps are not taken to address it.
Obasanjo stated this on Monday while speaking at the 7.0 Presidential Youth Mentorship Retreat, themed ‘African Youth Renaissance’, held at the Youth Development Centre, Olusegun Obasanjo Presidential Library, Abeokuta, Ogun State.
He said Nigeria’s debt had increased from $36 billion, which he described as a major concern during his administration, to $147 billion.
Obasanjo said the amount required to service the debt had also increased significantly, warning that the situation could leave the country with fewer resources for development and force it to consume its capital to meet financial obligations.
He recalled that during his administration, the country was spending about $3.6bn annually on debt servicing, yet the debt burden was not reducing.
According to him, with the current debt profile of $147 billion, Nigeria could be spending as much as $15 billion on debt servicing, describing the development as a serious threat to the country’s economic future.
Obasanjo also questioned the utilisation of funds borrowed by successive administrations, asking Nigerians to demand accountability over the projects and investments financed with the loans.
“What have we spent the money that we borrowed on? Where is the spending?” he asked.
He further recalled that Nigeria’s debt had been reduced to less than $4bn following the debt relief secured during his administration, expressing concern that the country had returned to massive borrowing within two decades.
He also recalled that his administration left over $65 billion in foreign reserves and more than $25 billion in the Excess Crude Account, putting the combined financial buffers at over $90 billion.
Obasanjo questioned how the country had moved from having such reserves to depending heavily on borrowing, urging Nigerians, particularly young people, to pay attention to the country’s economic direction.
He warned that the consequences of the rising debt would not be limited to the present generation, stressing that Nigerians and their children, as well as grandchildren, would eventually bear the burden.
“Debt is more than leprosy. Leprosy destroys one person; debt destroys generations.
“If that doesn’t worry anybody, it should worry you, because that money will be paid.
“You will pay, your children will pay, your generation will pay and that’s what it is,” he said.
The former president urged participants at the retreat to reflect on the country’s economic challenges, the decisions that had brought Nigeria to its present situation and the measures required to reverse the trend.
