Former President Olusegun Obasanjo has expressed concern over Nigeria's growing debt profile, warning that the financial burden will ultimately be borne by the present generation, their children and future generations if urgent corrective measures are not taken.
Obasanjo spoke on Monday at the 7th Presidential Youth Mentorship Retreat, themed "African Youth Renaissance", held at the Youth Development Centre of the Olusegun Obasanjo Presidential Library in Abeokuta, Ogun State.
The former president noted that Nigeria's debt has risen sharply from about $36 billion during his administration to approximately $147 billion, describing the development as a serious threat to the nation's economic future.
According to him, the country's debt-servicing obligations have also increased significantly, reducing resources available for critical development projects and potentially forcing the nation to consume its capital to meet financial commitments.
Obasanjo recalled that during his tenure, Nigeria spent around $3.6 billion annually servicing debt without making substantial progress in reducing the debt burden. He argued that with the current debt profile, debt servicing could now be costing the country as much as $15 billion annually.
Questioning the use of borrowed funds by successive administrations, he called on Nigerians to demand accountability regarding projects and investments financed through loans.
"What have we spent the money that we borrowed on? Where is the spending?" he asked.
The former president also reflected on the debt relief secured during his administration, which reduced Nigeria's debt to less than $4 billion. He expressed disappointment that the country had returned to heavy borrowing less than two decades later.
Obasanjo further stated that his administration left behind more than $65 billion in foreign reserves and over $25 billion in the Excess Crude Account, bringing the nation's financial buffers to more than $90 billion.
He questioned how Nigeria moved from maintaining substantial reserves to relying heavily on borrowing and urged young Nigerians to pay closer attention to the country's economic trajectory.
Describing debt as a danger that transcends generations, Obasanjo warned that the consequences of today's borrowing would be felt for many years to come.
"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.
He urged participants at the retreat to reflect on Nigeria's economic challenges.
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OBJ, shut up
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