Former President Olusegun Obasanjo has strongly criticized the federal government's approach to national borrowing, declaring that excessive public debt is far more destructive than leprosy because its severe consequences mortgage the futures of unborn generations.
Speaking at the 3rd Ajibosin Annual Symposium held at the Olusegun Obasanjo Presidential Library in Abeokuta, the former leader dismissed the notion that borrowing is benign as long as it can be repaid. He argued that mounting financial liabilities demonstrate a fundamental failure in economic management.
Critiquing International Financial Institutions
Turning his attention to global financial bodies, Obasanjo criticized the structural adjustment and economic policies prescribed by the World Bank and the International Monetary Fund (IMF), stating they are fundamentally misaligned with Nigeria's national development and prosperity.
Drawing from historical examples, he recounted discussions with former British Prime Minister James Callaghan regarding agricultural subsidies, questioning why international lenders demand the removal of domestic support systems while developed nations protect their own industries.
Obasanjo further argued that many of the economic prescriptions adopted by developing nations are crafted by foreign experts who lack a true understanding of local realities. He questioned the logic of relying on foreign policy frameworks that fail to account for the socio-economic complexities of a nation of over 250 million people.
The Collapse of the Naira
Reflecting on Nigeria's economic trajectory over the decades, the former president lamented the drastic loss of value of the national currency. He noted that when he established his agricultural enterprise 47 years ago, the exchange rate was nearly parity with the US dollar, contrasting it sharply with the current economic reality. He challenged current leaders to reflect deeply on policy decisions and their direct impact on the citizens' standard of living.
Safeguarding Technological Sovereignty
Addressing the main theme of the symposium, which focused on artificial intelligence and grassroots development, Obasanjo warned against the uncritical adoption of foreign technologies. He emphasized that innovations introduced without local oversight and robust safeguards can easily become instruments of external exploitation. According to him, any technological tool that remains outside national control poses significant security and economic risks.
Echoing these sentiments, historian and political commentator Dr Umar Ardo cautioned that Africa risks entering a new phase of dependency if it fails to take ownership of its data infrastructure, intellectual property, and technological systems.
Ardo drew parallels between the current digital age and historical eras of exploitation—ranging from the transatlantic slave trade to colonialism and post-independence commodity exportation—where Africa supplied the raw resources and labor while external powers controlled the machinery, set the prices, and captured the majority of the economic value.
He concluded that as artificial intelligence becomes the new frontier of global commerce, African nations must establish rigorous terms of participation to ensure that local data and innovations serve domestic development priorities rather than fueling a new cycle of external extraction.