Former Nigerian President Olusegun Obasanjo recently voiced his concerns about Nigeria’s current debt burden, lamenting the sharp rise in liabilities since he left office in 2007. In an exclusive interview with Kayode Akintemi of News Central Television, Obasanjo reflected on the financial health of the nation during his presidency and expressed dismay over the state of Nigeria’s debt and reserve situation.
Obasanjo recalled that during his administration, Nigeria had about $70 billion in total assets, comprising a $45 billion reserve and $25 billion in an “excess crude” account. This was achieved after his government managed to significantly reduce Nigeria’s debt and build up substantial reserves. His government, he said, faced an initial debt overhang of nearly $36 billion upon taking office in 1999. However, with consistent efforts and an international debt relief package, he was able to reduce Nigeria’s debt to approximately $3.5 to $3.6 billion by the time he left office in 2007.
Reflecting on his experience, Obasanjo said, “I came in 1999 and met $3.7 billion in the reserve. And I have told you, we were spending $3.5 billion to service the debts. That’s what we had.” By restructuring and securing debt forgiveness, his administration was able to create a healthier financial landscape for Nigeria. Obasanjo emphasized that by 2007, the country’s financial outlook had transformed, with Nigeria’s reserve soaring to $45 billion. This substantial reserve was complemented by a unique “excess crude” account holding $25 billion. The “excess crude” account was a special provision for funds generated beyond the official budget estimates from crude oil sales, a policy born of conservative budgeting.
According to Obasanjo, this was a safeguard for Nigeria’s future, providing a critical buffer in times of fluctuating oil prices. “At the same time, the reserve that was $3.7 billion when I came in went to $45 billion. At the same time, we had what we called ‘Excess crude,’ which is what is in excess of what we budget and what we actually sell the crude. Normally, we are conservative in budgeting, we call it ‘Excess crude.’ So, we had in it about $25 billion. When you add that to the reserve, we are talking about $70 billion,” he stated. These reserves, he highlighted, were part of an intentional effort to provide Nigeria with financial resilience and security for future generations.
In his interview, Obasanjo expressed regret that, despite these efforts to establish a strong financial foundation for Nigeria, the progress achieved during his administration has since eroded. Since 2007, he noted, both the substantial reserves and the excess crude account have dwindled, and the country’s debt has ballooned to levels surpassing those he inherited in 1999. “The point is that I left in 2007. Today between 2007 and 2024, all that amount of money has gone; all of it. Not only that, but all the money they made all that period had gone. And today, we owe more than we owe when we came to government in 1999,” he remarked with evident frustration.
Obasanjo’s comments come at a time when Nigeria is facing increasing scrutiny over its debt profile and economic stability. Many economists and political observers are questioning the direction of the country’s economic management, particularly regarding fiscal discipline and long-term planning. Obasanjo’s reflection on his administration’s prudent budgeting and cautious debt management approach offers a stark contrast to the current state of the nation’s finances.
Beyond financial figures, Obasanjo’s critique extends to Nigeria’s leadership. He voiced concerns over the country’s political and administrative direction, pointing to what he described as a decline in the quality of governance. The former president expressed disappointment over what he perceives as a lack of visionary and accountable leadership, emphasizing that this has exacerbated Nigeria’s economic challenges and left the nation vulnerable to crises.
As one of Nigeria’s most vocal statesmen, Obasanjo’s reflections highlight a need for deeper introspection within the government and among citizens alike. The issues he raised in his interview underscore a growing national discourse on the sustainability of Nigeria’s economic and political trajectory, with many citizens and political analysts calling for reforms to improve governance, promote transparency, and address the country’s debt challenges.
Nigeria’s current debt situation has sparked national concern, as citizens and policymakers alike weigh the long-term consequences of unchecked borrowing and dwindling reserves. Economic experts warn that high debt levels, combined with inadequate savings and a reliance on oil revenue, pose significant risks to Nigeria’s economic stability. With oil prices and global markets fluctuating, Nigeria’s economy remains exposed to external shocks that could exacerbate the country’s financial struggles.
Obasanjo’s remarks resonate with a broad segment of Nigerians who are increasingly anxious about the future. His appeal for prudent financial management and quality leadership has revived discussions on the importance of sustainable policies and responsible governance to ensure Nigeria’s prosperity.
While Nigeria’s government has yet to respond formally to Obasanjo’s comments, the former president’s concerns add weight to ongoing debates about the nation’s economic policies and leadership. Many see his remarks as a call for Nigerian leaders to prioritize fiscal responsibility and to adopt long-term strategies that safeguard the country’s resources and promote prosperity for all citizens. Obasanjo’s reflection serves as a reminder of the crucial role leadership plays in shaping the economic fortunes of nations and the importance of accountability in public office.
