Former Nigerian President Olusegun Obasanjo has disclosed that his administration was confronted with servicing Nigerian loans worth over $3.5 billion when he assumed office in 1999.
Describing the debt crisis of Nigeria as terrible, Obasanjo stated that it was worse than inheriting a zero budget.
According to him, the worrying situation forced his government into seeking debt relief as a veritable option for the country to escape the debt trap.
At the Afreximbank 32nd Annual Meeting in Abuja on Friday, he said the debt was compounded by exorbitant interest rates and punitive penalties, plunging Nigeria into a cycle of economic stagnation that could not be broken without decisive reforms.
Speaking at a high-level panel on Africa’s development financing, Obasanjo stated that confronting the crisis necessitated tough decisions and introspection.
He noted that, beyond the debt, what drained the country most was wasteful spending and entrenched corruption within the government.
“There is a lot of waste in government. If you look inward, you will see it, and once you reduce or eliminate it, development becomes possible,” he said.
According to him, one of his boldest reforms was his anti-corruption crusade, during which he sent a landmark anti-corruption bill to the National Assembly. The bill remained stuck for 18 months as lawmakers resisted, fearing its implications.
“They watered it down because they said they would all go to jail if it passed the way I presented it. Yet, despite the resistance, the eventual passage of the bill helped lay the foundation for resource mobilisation both locally and internationally, enabling the government to begin refilling an empty box,” he said.
Obasanjo insisted that Africa already has access to the funds it needs for development, both within the continent and from global partners, but unlocking them depends on political will.
He argued that fighting corruption, cutting unnecessary luxuries, enacting sound economic policies, and providing meaningful incentives are the real levers that can shift Africa’s trajectory from dependency to self-driven prosperity.
“The money to develop Africa is both inside and outside the continent. What matters is having the courage and clarity to harness it. Stop corruption, stop waste, get the policies right, and Africa will grow,” he said.
SOURCE: guardian.ng