‘Your Entire Generation Will Pay’ — Obasanjo Raises Alarm Over Nigeria’s Debt Burden

Former President Olusegun Obasanjo has expressed concern over Nigeria’s rising debt profile, warning that the monetary burden will finally be borne by the current era, their kids and future generations if pressing corrective measures aren’t taken.

Obasanjo spoke on Monday on the seventh Presidential Youth Mentorship Retreat, themed “African Youth Renaissance”, held on the Youth Development Centre of the Olusegun Obasanjo Presidential Library in Abeokuta, Ogun State.

The former president famous that Nigeria’s debt has risen sharply from about $36 billion throughout his administration to roughly $147 billion, describing the event as a critical risk to the nation’s financial future.

According to him, the nation’s debt-servicing obligations have additionally elevated considerably, decreasing sources accessible for essential improvement initiatives and probably forcing the nation to devour its capital to satisfy monetary commitments.

Obasanjo recalled that in his tenure, Nigeria spent round $3.6 billion yearly servicing debt with out making substantial progress in decreasing the debt burden. He argued that with the present debt profile, debt servicing might now be costing the nation as a lot as $15 billion yearly.

Questioning the usage of borrowed funds by successive administrations, he referred to as on Nigerians to demand accountability relating to initiatives and investments financed via loans.

“What have we spent the money that we borrowed on? Where is the spending?” he requested.

The former president additionally mirrored on the debt aid secured throughout his administration, which lowered Nigeria’s debt to lower than $4 billion. He expressed disappointment that the nation had returned to heavy borrowing lower than twenty years later.

Obasanjo additional acknowledged that his administration left behind greater than $65 billion in overseas reserves and over $25 billion within the Excess Crude Account, bringing the nation’s monetary buffers to greater than $90 billion.

He questioned how Nigeria moved from sustaining substantial reserves to relying closely on borrowing and urged younger Nigerians to pay nearer consideration to the nation’s financial trajectory.

Describing debt as a hazard that transcends generations, Obasanjo warned that the implications of in the present day’s borrowing could be felt for a few years to come back.

“Debt is more than leprosy. Leprosy destroys one person; debt destroys generations.

“If that does not fear anyone, it ought to fear you, as a result of that cash will likely be paid.

“You will pay, your children will pay, your generation will pay and that’s what it is,” he stated.

He urged members on the retreat to replicate on Nigeria’s financial challenges.

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