Former President Olusegun Obasanjo has criticised President Bola Tinubu’s position on government borrowing, warning that excessive debt could have devastating consequences for future generations of Nigerians.

Obasanjo described public debt as worse than leprosy, rejecting Tinubu’s earlier argument that borrowing was not inherently harmful as long as the government had the capacity to repay its loans.

The former President made the remarks on Friday at the Ajibosin Platform, a public forum held in Abeokuta, Ogun State, with the theme, “Leveraging Artificial Intelligence to Solve Grassroots Problems and Accelerate National Development.”

His comments came days after Tinubu requested approval from the National Assembly to secure fresh external loans worth $20.52 billion and €1.045 billion under the Federal Government’s 2026–2027 Supplementary External Borrowing Plan.

The President’s request was conveyed in a letter read by Senate President Godswill Akpabio during plenary, with the proposed loans expected to finance projects in infrastructure, agriculture, healthcare, education, water supply, security, employment generation and financial management reforms.

Tinubu explained that the additional borrowing was necessary to address Nigeria’s infrastructure deficit and bridge funding gaps affecting critical development projects.

The request was subsequently referred to the Senate Committee on Local and Foreign Debts for consideration.

The latest borrowing proposal followed the President’s defence of his administration’s borrowing policy in April, when he maintained that taking loans should not be viewed negatively.

“If we have to borrow, we borrow. Borrowing is not leprosy, we just have to work hard to be able to pay for it,” Tinubu had said during a meeting with Plateau State leaders, led by Governor Caleb Mutfwang and the All Progressives Congress National Chairman, Prof. Nentawe Yilwatda, at the State House.

However, Obasanjo disagreed with the President’s position, arguing that the consequences of accumulating public debt extend beyond the present generation.

He said, “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.”

The former President also expressed concern over the continued depreciation of the naira, recalling that the Nigerian currency was significantly stronger against the United States dollar when he established his farm 47 years ago.

Questioning the country’s economic progress over the period, Obasanjo said the exchange rate had deteriorated considerably, moving from N1 to $1.85 to approximately N1,500 to a dollar.

“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 also questioned the knowledge and capacity of Nigeria’s political leaders to address the country’s challenges and improve the living conditions of citizens.

“What do our leaders know? And what do they not know? And from what they know, what can they do for us?” he queried.

Obasanjo further criticised Nigeria’s dependence on the World Bank and the International Monetary Fund, arguing that the institutions were established without Nigeria’s participation and that their economic recommendations might not adequately address the country’s unique circumstances.

He urged Nigerian leaders to carefully examine foreign economic policies rather than depend on external institutions to determine the country’s development direction.