Obasanjo faults N88tn debt burden, says relief mismanaged

Former President Olusegun Obasanjo has raised concerns about the likelihood of Nigeria and other African countries securing debt relief due to their substantial debt burdens.JAMB Portal

He shared these thoughts during an event with the 2023 awardees of the Future Africa Leaders Foundation, an initiative of Pastor Chris Oyakhilome, as reported in a statement by his Special Assistant on Media, Kehinde Akinyemi.InformationGuideNigeria

Obasanjo reflected on the significant debt relief Nigeria obtained from the Paris Club during his presidency. However, he lamented that this relief was allegedly mismanaged by subsequent administrations, leading to a situation where the country has amassed a large and burdensome debt. As of September 2023, Nigeria’s public debt stood at N87.91 trillion, according to the Debt Management Office.

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The former president noted that this mismanagement and the current debt levels might make it nearly impossible for future generations of Africans to benefit from similar debt relief. He underscored the importance of responsible debt management and governance in avoiding such financial predicaments.NYSC Portal

During Obasanjo’s tenure in 2003, Nigeria secured a notable debt relief deal. In October 2005, Nigeria and the Paris Club announced a final agreement that provided $18 billion in debt relief and reduced Nigeria’s debt stock by $30 billion. The deal was finalized on April 21, 2006, when Nigeria made its final payment and cleared its books of any Paris Club debt.

Obasanjo was quoted to have said, “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.”

Obasanjo described debt as a trap that no individual or country should fall into. While noting that leadership was the number one problem facing the continent, the former president added, “The coming generations will have no choice but to pay the current debt being incurred by different countries in the continent.”

Commending Oyakhilome for his effort in building leaders, he said, “A leader should be able to set good examples, be bold and courageous when making decisions, accepting mistakes and learning from them as well as having a realistic dream.”

In a related development, the former president stated that the country’s socio-economic situation could be better in four years or thereabouts with prayers and thanksgiving.JAMB Result

He expressed this hope at the Christian Association of Nigeria Ogun State’s 5th Thanksgiving service of his conferment as the Asiwaju Onigbagbo, Ogun State, held at the Olusegun Obasanjo Presidential Library, Abeokuta on Tuesday.

The former President was quoted to have said, “Think about it. If you have breathed the free air of God, you should have cause to thank God. So, things are bad, they may be good in a space of what, four years? and who knows for Nigeria, things that are bad today, maybe good tomorrow.

“That is our prayer and that is why we must never stop thanking God. In all situations, give thanks to God.”

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