Former President Olusegun Obasanjo has criticised President Bola Ahmed Tinubu’s borrowing policy, warning that Nigeria risks mortgaging the future of generations as the administration seeks approval for fresh external loans of $20.52 billion and €1.045 billion.

Obasanjo spoke on Friday at the Ajibosin Platform, a public forum in Abeokuta, the Capital of Ogun State.

He described President Tinubu’s defence of borrowing as “absolute nonsense”, arguing that the consequences of accumulating debts were more devastating than leprosy because they affected entire generations.

“And for anybody to say debt is no leprosy, is absolute nonsense. Debt is worse than leprosy. Because leprosy destroys only one person. Debt destroys generations,” Obasanjo said.

He was reacting to Tinubu’s April declaration that borrowing was not leprosy and that his administration would continue to obtain loans whenever necessary to finance development.

“If we have to borrow, we borrow. Borrowing is not leprosy, we just have to work hard to be able to pay for it,” the president had said during a meeting with Plateau State leaders at the Presidential Villa, Abuja.

The latest borrowing request, which covers $20.52 billion and €1.045 billion, has renewed concerns over Nigeria’s growing debt profile and the increasing burden of debt servicing on government revenue.

Since assuming office in May 2023, Tinubu has repeatedly sought legislative approval for domestic and external borrowing to finance budget deficits and development projects.

According to the Debt Management Office, Nigeria’s public debt rose from N87.38 trillion in June 2023 to N166.79 trillion in June 2026, although exchange-rate movements also contributed to the increase.

Obasanjo also questioned the country’s economic management, lamenting the depreciation of the naira.

“When I started my farm, 47 years ago, naira to the dollar was one naira to $1.85. Forty-seven years ago. What has Nigeria done in 47 years that we now have 1,500 naira to the dollar? What have we done?” he asked.

He further criticised Nigeria’s dependence on the World Bank and International Monetary Fund, arguing that their economic prescriptions did not necessarily reflect the country’s realities.