‘Debt Is No Leprosy’: Obasanjo, Tinubu Differ Over Nigeria’s Borrowing Policy

Former President Olusegun Obasanjo has criticised President Bola Tinubu over his defence of the Federal Government’s borrowing policy, describing the President’s remark that “debt is no leprosy” as “absolute nonsense”.

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Obasanjo made the criticism on Friday while speaking at the Ajibosin Platform, a public forum held in Abeokuta, Ogun State, with the theme, “Leveraging Artificial Intelligence to Solve Grassroots Problems and Accelerate National Development”.

The former Nigerian leader was reacting to Tinubu’s earlier defence of his administration’s borrowing policy in April, when the President maintained that borrowing was not inherently wrong and that his government would continue to obtain loans whenever necessary.

However, Obasanjo disagreed with the position, insisting that borrowing should not be treated casually, particularly when the country’s ability to repay its debts and the impact on future generations are considered.

His remarks have brought renewed attention to Nigeria’s rising public debt and the debate over the Federal Government’s reliance on domestic and foreign borrowing to finance its expenditure and development programmes.

The exchange also highlights the differing economic perspectives of the two leaders, particularly on the management of public finances, responsible borrowing and the long-term sustainability of Nigeria’s debt obligations.