Obasanjo Fires Back at Tinubu Over Borrowing, “Debt Destroys Generations”

• Former President Olusegun Obasanjo fired back at President Bola Tinubu over remarks he made about government borrowing in April
• Obasanjo made the remarks at a public forum in Abeokuta, Ogun State, on Friday
• The former president also raised concerns about Nigeria's reliance on the World Bank and IMF to guide its economic decisions

Legit.ng journalist Adekunle Dada has over eight years of experience covering metro, government policy, and international issues

Abeokuta, Ogun State - Former President Olusegun Obasanjo has taken a direct swipe at President Bola Tinubu over the president's claim that government borrowing should not be viewed negatively, describing the position as "absolute nonsense."

Obasanjo argued that debt frpm borrowing is far more damaging than leprosy.

As reported by Daily Trust, he stated this on Friday, October 30, 2026, at the Ajibosin Platform in Abeokuta, Ogun State, a public forum focused on leveraging artificial intelligence to solve grassroots problems and accelerate national development.

Legit.ng reports that in April, Tinubu had defended his administration's borrowing strategy, telling Nigerians:

"If we have to borrow, we borrow. Borrowing is not leprosy, we just have to work hard to be able to pay for it."

The remarks drew widespread public attention given rising concerns over Nigeria's debt burden and the growing proportion of national revenue spent on debt servicing.

Obasanjo: Debt destroys generations

Responding to those comments,

"And for anybody to say debt is no leprosy, is absolute nonsense. Debt is worse than leprosy. Because leprosy destroys only one person. Debt destroys generations," he said.

The former president also pointed to the collapse of the naira's value as evidence of decades of poor economic management, recalling that when he established his farm 47 years ago, the exchange rate stood at one naira to $1.85.

"What has Nigeria done in 47 years that we now have 1,500 naira to the dollar? What have we done?" he asked.

Beyond borrowing, Obasanjo challenged the capacity of Nigeria's political leaders to make decisions that genuinely serve ordinary citizens. "What do our leaders know? And what do they not know? And from what they know, what can they do for us?" he said.

Obasanjo criticises World Bank, IMF influence

The former president also raised concerns about Nigeria's dependence on international financial institutions, arguing that the World Bank and IMF were not set up with African nations in mind.

He said: "World Bank and IMF were not designed for us. They were not built by us.

They were built before we became independent. And that's the people who would determine what we do."

He used agriculture as an example, recalling how Nigeria was advised against subsidising the sector despite the substantial support farmers in wealthy nations receive from their own governments.

Obasanjo also cautioned against relying too heavily on foreign-trained economic experts whose prescriptions may not account for Nigeria's specific conditions and realities.

Tinubu defends new loans

Meanwhile, Legit.ng also reported that President Tinubu published an essay defending his administration's borrowing decisions and linking new loans to major infrastructure projects across Nigeria.

Tinubu cited a drop in headline inflation, rising external reserves, and GDP growth as evidence that his 2023 economic reforms are bearing fruit.

The president listed five priorities for the next phase of his administration's economic strategy, covering food prices, fiscal discipline, and human development.