‘Nigeria is sinking’ – Obasanjo raises alarm over rising debt

Ex-president Olusegun Obasanjo has stated that Nigeria is rapidly sinking under the weight of foreign and domestic debts.

The elder statesman stated this on Friday as he presented a paper titled ‘Nigeria: The Challenges of Debt and Sustenance of Democracy.’

Speaking after Dr. Olurotimi Badero, the Nigerian American cardiologist and international nephrologist who was recently recognised as world’s first and only fully trained cardio-nephrologist, Obasanjo said: “There is a dangerous emerging trend today in Africa, and it is eerily familiar with developments on the continent in the 70s.

“Our political leaders have suddenly developed not just a taste for, but a voracious appetite for debt.

“As usual, most of such debts procured are hardly thought through.

“Predictably, ability to repay such debts is lacking.

“Unfortunately for us and unlike in the past, the new creditors are less tolerant of our limitations and inadequacies and are now demanding to manage institutions and agencies with a view to recouping their loans.”

Flaunting his nearly 12 years as head of state, Obasanjo, who was guest speaker before a largely youthful audience at an event tagged ‘The Nigerian Story, Why I am Alive Campaign’, sponsored by Unity Bank, in Lagos, said: “Using debt to finance growth and/or development is a double-edged sword that must be wielded with a high degree of discipline, responsibility and foresight.”

Stressing that a well-caliberated debt for infrastructure and other developmental goals could be positive, the former president said:

“Everyone knows that our governments are notoriously deficient in serious and adequate discipline and most often lack competence and consistency as well.”

He expressed worry that defaulting on debt repayment is very easy and convenient, which also favours the creditor.

“I have borrowed from banks as a private sector operator and I have borrowed as a political leader, so I believe you would understand my fears and experience about jumbo loans and my agony in getting rid of our external debts and developing a sustainable approach to address our domestic debts.”

He added that to now see all those efforts go to waste barely less than 15 years is more than disturbing to him.