Expressing concern, former President Olusegun Obasanjo has bemoaned Africa’s debt situation, emphasizing that the continent’s future generations will be compelled to bear the burden of repaying these debts.
Addressing the 2023 awardees of the Future Africa Leaders Foundation, a program initiated by Pastor Chris Oyakhilome, former President Olusegun Obasanjo expressed concerns about Africa’s challenging debt situation.
He mentioned that obtaining debt relief could be a formidable task for African nations due to their substantial debt burdens. Furthermore, Obasanjo asserted that the debt relief Nigeria secured from the Paris Club during his tenure had purportedly been mishandled by subsequent administrations, resulting in significant and unjustifiable debt for the country.
“With the level of mismanagement of the previous debts written off for the country, it will be almost impossible for any administration to get similar gesture in the continent,” the former President was quoted in a statement by his media aide, Kehinde Akinyemi.
Describing debt as a trap that no individual or country should fall into, Obasanjo explained that leadership was the number one problem facing the continent.
“The coming generations will have no choice but to pay the current debt being incurred by different countries in the continent,” Obasanjo said Wednesday.
As of September 2023, data provided by the Debt Management Office indicates that Nigeria’s public debt stands at N87.91 trillion.
At the event, the former President commended Oyakhilome for his effort in building leaders, saying, “A leader should be able to set good examples, be bold and courageous when making decisions, accept mistakes and learn from them as well as have a realistic dream.”
The Debt Management Office reports that Nigeria’s total public debt reached N87.91 trillion by the conclusion of the third quarter in 2023. The breakdown reveals N31.98 trillion in external debt and N55.93 trillion in domestic debt for the specified period.
The administration of Obasanjo earned recognition for successfully securing debt relief for Nigeria in 2003. Subsequently, a final agreement between Nigeria and the Paris Club in 2005 led to debt relief totaling $18 billion and an overall reduction of Nigeria’s debt stock by $30 billion. The completion of this deal occurred on April 21, 2006, marked by Nigeria’s final payment and the clearance of its books from any Paris Club debt.
In a related development, the former president expressed optimism that the country’s socio-economic situation could significantly improve in approximately four years through prayers and thanksgiving. He shared this hope during the Christian Association of Nigeria (CAN) Ogun State’s 5th Thanksgiving service, commemorating his conferment as the Asiwaju Onigbagbo, Ogun State, held at the Olusegun Obasanjo Presidential Library in Abeokuta on Tuesday.