Former Nigerian President Olusegun Obasanjo warned that the country’s mounting debt will be paid by the present generation, their children and grandchildren if urgent action is not taken. He made the remarks on Monday at the 7.0 Presidential Youth Mentorship Retreat, themed “African Youth Renaissance,” held at the Youth Development Centre of the Olusegun Obasanjo Presidential Library in Abeokuta, Ogun State.
Obasanjo said Nigeria’s debt has risen from about $36 billion when he was in office to a staggering $147 billion today. He added that the cost of servicing that debt could reach as high as $15 billion annually, compared with the roughly $3.6 billion the country spent each year during his administration. The former president warned that such a burden could divert resources from development and force the state to use its capital to meet financial obligations.
He questioned how the funds borrowed by successive governments have been used, asking, “What have we spent the money that we borrowed on? Where is the spending?” and urged Nigerians to demand accountability over projects and investments financed with the loans.
Obasanjo recalled that his administration had secured debt relief that reduced Nigeria’s debt to less than $4 billion and left the country with more than $90 billion in financial buffers, including over $65 billion in foreign reserves and more than $25 billion in the Excess Crude Account. He expressed concern that the country had returned to heavy borrowing within two decades.
“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.
Addressing the retreat’s participants, Obasanjo urged young people to pay attention to Nigeria’s economic direction and to reflect on the decisions that have led to the current debt situation. He called for measures to reverse the trend and protect future generations from the long‑term consequences of the rising debt burden.
<small>Source: Daily Post Nigeria — read the original story there.</small>
