Obasanjo Criticizes Tinubu's Borrowing, Warns Debt Will Destroy Generations
Former President Olusegun Obasanjo denounced President Bola Tinubu’s plan to secure $20.52 billion and €1.045 billion in new external loans.
In Brief
- •Former President Olusegun Obasanjo denounced President Bola Tinubu’s plan to secure $20.52 billion and €1.045 billion in new external loans.
- •Obasanjo said debt “destroys generations,” contrasting it with leprosy, and called Tinubu’s defense of borrowing “absolute nonsense.”
- •Tinubu’s April statement said borrowing was not leprosy and that the administration would continue to obtain loans as needed.
- •Nigeria’s public debt rose from N87.38 trillion in June 2023 to N166.79 trillion in June 2026, raising concerns over debt servicing.
Why It Matters
The debate highlights Nigeria’s growing reliance on external borrowing to finance development projects, raising questions about fiscal sustainability and intergenerational equity. Obasanjo’s critique underscores the potential long‑term burden on public finances and the need for transparent debt management. If the borrowing continues unchecked, the country may face higher interest payments, reduced fiscal space for social spending, and increased vulnerability to global financial shocks, affecting millions of Nigerians.
Key Details
- New External Loans
- $20.52 billion and €1.045 billion
- Debt Increase
- from N87.38 trillion to N166.79 trillion (June 2023–June 2026)
- Obasanjo's Critique Date
- 2026-10-30
- Tinubu's April Statement
- Borrowing not leprosy, will continue to borrow
- Naira Depreciation
- from 1.85 to 1,500 per dollar over 47 years
Context & Background
Nigeria’s public debt has surged in recent years, prompting scrutiny of the Tinubu administration’s borrowing strategy. The Debt Management Office reports that the debt increase includes both domestic and external borrowing, with exchange‑rate movements contributing to the rise.
Original Reporting & Sources
VNews is an independent briefing product. Original reporting remains credited to the following publishers:
This brief was synthesized automatically using attributed third-party reporting. VNews is a digital news publication produced under the VContent Group brand and operated by Francis Vincent Sunday in Ghana, independent from the publishers cited above. Read our AI Transparency Policy and Editorial & Corrections Policy.