Debt Worse Than Leprosy, Destroys Generations, Obasanjo Tells Tinubu
BY FRONTLINE REPORTERS
Former President Olusegun Obasanjo has criticised President Bola Tinubu’s stance on borrowing, describing debt as worse than leprosy because of its potential to destroy generations.
Obasanjo made the remarks while speaking at a symposium in Abeokuta, Ogun State, on leveraging Artificial Intelligence (AI) to address grassroots challenges and accelerate national development.
President Tinubu had declared in April that borrowing should not be regarded as inherently negative, arguing that governments could take loans when necessary, provided they had the capacity to repay them.
However, Obasanjo strongly disagreed with the position, dismissing it as absolute nonsense.
The former president also expressed concern over Nigeria’s economic decline, recalling that when he established his farm 47 years ago, the naira exchanged at ₦1 to $1.85.
He challenged the country’s leaders to explain how the naira had depreciated to approximately ₦1,500 to the dollar, questioning the economic progress Nigeria had made over the decades.
Meanwhile, the symposium’s guest speaker, historian and public policy scholar, Umar Ardo, warned that Artificial Intelligence could deepen Africa’s dependence on foreign powers if the continent failed to control its technology and digital infrastructure.
Ardo argued that without strategic investments in semiconductor manufacturing, data centres, African-owned datasets and continental cooperation, AI could become another instrument for controlling Africa rather than empowering the continent to determine its own future.
Obasanjo’s criticism comes amid President Tinubu’s defence of his administration’s plan to secure additional foreign loans to finance infrastructure development.
Tinubu, on Thursday, maintained that Nigeria needed long-term investments in critical infrastructure to achieve its ambition of becoming a $1 trillion economy by 2030.
In a statement titled “From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy,” the President argued that the focus should be on what borrowed funds would deliver rather than the amount being borrowed.
“The key question is not how much we borrow, but what we build, the value we create and the future we leave behind,” he said.
Tinubu identified the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid improvements and the modernisation of major commercial ports in Lagos as some of the projects earmarked for funding.
Accordingto him, the projects, alongside investments in healthcare, education and vocational training, would strengthen economic connectivity, reduce transportation costs, support agriculture and industrial development, and attract private investment.
The President projected that the Lagos-Calabar Coastal Highway alone could reduce transportation costs along its corridor by 15 to 20 per cent and contribute up to two per cent to Nigeria’s Gross Domestic Product (GDP) through increased trade, tourism and industrial activities.
He further estimated that the highway would generate about 100,000 direct jobs in construction and engineering, as well as more than 150,000 indirect jobs in logistics, building materials and related services.
However, the administration’s borrowing plans have attracted criticism from organised labour.
The Nigeria Labour Congress (NLC) has questioned the Federal Government’s request to the National Assembly for approval to borrow $20.5 billion and €1.45 billion, particularly against the backdrop of government claims that revenue has increased following the removal of the petrol subsidy.
