Debt Worse Than Leprosy, Destroys Generations, Says Obasanjo

Former President Olusegun Obasanjo has criticised President Bola Tinubu over his position on borrowing, declaring that debt is worse than leprosy because it destroys generations.

He stated this while speaking at a symposium, a public forum focused on leveraging Artificial Intelligence to solve grassroots problems and accelerate national development in Abeokuta, Ogun State.

Tinubu had said in April that borrowing should not be viewed negatively, insisting that the government would borrow when necessary, provided it could repay the loans.

But Obasanjo disagreed, describing such a position as absolute nonsense.

The former president also questioned Nigeria’s economic performance, recalling that when he established his farm 47 years ago, the naira exchanged at ₦1 to $1 and 85 cents.

He challenged the country’s leadership to explain the naira’s depreciation to about ₦1,500 to a dollar, questioning what Nigeria had achieved over the decades.

Meanwhile, the guest speaker, historian and public policy scholar, Umar Ardo, has warned that artificial intelligence could deepen Africa’s dependence on foreign powers if the continent fails to control its technology and digital infrastructure.

Ardo warned that without investments in chip fabrication, data centres, African-owned datasets and continental cooperation, artificial intelligence could become another tool for managing Africa rather than empowering the continent to determine its own future.

Amid criticism, President Tinubu on Thursday defended his administration’s plan to take more foreign loans, arguing that Nigeria needs long-term investment in infrastructure to achieve its ambition of becoming a $1 trillion economy by 2030.

The President said the proposed loans would be used to build roads, improve electricity supply, upgrade ports and fund other projects that would create jobs, grow businesses and provide opportunities for future generations.

In a statement titled “From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy,” Tinubu said the focus should be on what the borrowed money would achieve rather than how much the government was borrowing.

“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.

He listed the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid improvements and upgrades to major commercial ports in Lagos among the projects the government plans to fund.

He said the projects, alongside investments in healthcare, education and vocational training, would connect economic regions, reduce the cost of transporting goods, support farming and industries, and attract private investors.

The President said the Lagos-Calabar Coastal Highway alone could reduce transport costs along its route by 15 to 20 per cent and add up to two per cent to Nigeria’s Gross Domestic Product (GDP) through increased trade, tourism and industrial activities.

Tinubu projected that the highway would create 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.

His statement came as the Nigeria Labour Congress (NLC) questioned the government’s request to the National Assembly for approval to borrow $20.5 billion and €1.45 billion, despite claims that government revenue had increased following the removal of the petrol subsidy.